So, what are the lenders doing to speed up the short sale process? Well, the big change I’ve seen is that most lenders used to require an offer before they would start the short sale process. Now, they encourage the homeowner to contact them early, so they can assess whether the home would qualify for the program and help them set a proper price.

The other noticeable item is that the lenders are trying to get the short sale approval process shortened from the average of 90 days down to 30 days in some cases.

These are all positive signs from the lending institutions. They probably realize, as I and my fellow Certified Distressed Property Experts do, that short sales will most likely be around for some time to come, especially if property values continue to decline or remain flat.

Some caveats for ‘Short Sale’ Buyers and Sellers.

SHORT SALE BUYERS

1. Be patient. This will not be a quick process.
2. Expect the unexpected.
3. Hire an Ann Arbor Realtor that is C.D.P.E. trained.
4. Don’t think you’re going to ’steal’ the home from the bank. Expect a 10%-15% discount from the lender off of the listing price.

SHORT SALE SELLERS

1. Don’t expect the bank to take a bath on the house, especially if you have assets…like $25,000 sitting in your savings or checking account. Some may, but not very likely.
2. Be prepared to provide detailed financial information and to submit a compelling hardship letter, explaining why you should qualify for a short sale, to your lender(s)
3. Be prepared that your lender will expect you to work out a repayment plan with them for the deficiency. Your goal is to have the deficiency amount forgiven-in-full, ‘Without Recourse‘. This is where your C.D.P.E. Professional can assist you greatly.
4. Expect a buyer or two to walk away before you get one that sticks.
5. Hire a C.D.P.E. Certified Real Estate Professional. Kristine Squiers