“Short Sale” is the buzz word that everyone is talking about these days when discussing the real estate market. Well, the Myrtle Beach Real Estate market is no different, and you most likely will come across some of these properties when conducting your search for the perfect home. There are several things that you need to know about pursuing a Short Sale, and the items are different whether you are purchasing or selling a property as a Short Sale.
Buying A Short Sale: If you are entertaining the idea of purchasing a “Short Sale,” be ready for a process of uncertainty. Prepare yourself to overcome many obstacles in pursuit of a great value in a property. It is not to say that every Short Sale comes to no fruition. In fact, banks have become well acquainted with the process, making many buyers happy with the end result. As the buyer of a “Short Sale”, you will place an offer with the seller and wait for their response. If accepted by the seller, then the bank gets involved. The seller and the seller’s real estate agent are responsible for getting the seller’s documentation to the bank in order to correctly process the “Short Sale”. When searching through the Myrtle Beach MLS, it is usually better to seek out the properties that are “Lender Approved Short Sales”, because the initial groundwork has already been laid, and the lender has approved the price at which the seller is advertising the property. If the property is not “Lender Approved” then there is no guarantee that the lender will agree to the price even being advertised on the MLS.
Selling as a “Short Sale”: Selling your property as a “Short Sale” can be time consuming, but advantageous to the property owner. I advise homeowners to do all they can to save themselves from foreclosure. There are, however, certain criteria that must be met in order for the lender to consider the property “Short Sale” approved. There must be a financial hardship in order to qualify, and the lender must decide that the hardship will lead you down the path to foreclosure in the future. From my experience, banks have recently begun to process “Short Sales” rather than foreclosing on the properties. The foreclosure process is a costly and timely one, and banks realize that effectively negotiating a “Short Sale” may be in their best interest.
There are certain documents that are required by the bank in order to get the process started. All banks work differently, therefore these are just recommended procedures to help you better understand what may be ask for. The bank usually wants to see an offer on the property before doing any negotiating. With this offer the seller needs to present a “Hardship Package”. In the “Hardship Package” the seller will need to present the bank with certain financial statements and tax returns. Also a HUD 1 from a licensed real estate attorney is needed to show the bank what the bottom line figure that they will receive is. The process of correctly negotiating a “Short Sale” is not something the seller should go at alone. Seek out a “Certified Distressed Property Expert” to assist with the process.