A short sale occurs as an alternative to foreclosure. It involves three major parties. A buyer, a seller, and a lender. The time it takes for the seller to find a buyer can increase the length of time to close the sale. Even when this has been done, it is subject to the lender’s approval. The lender is bound to take a loss. They will make sure the buyer’s price is the best they can get and that the seller truly can’t pay.
A short sale always involves a lender taking a loss on what they owe. Due to this, they will want to make sure that the homeowner is truly in financial distress.
The ‘short sale package’ that the homeowner sends is very bulky. This is because it contains many documents that should prove the homeowner’s hardship. Depending on what might have caused the hardship, relevant documents should be included. It may include medical bills, details of a divorce, or proof of termination of employment. It will also need to include tax reports, bank statements, and information on other assets.
Preparing all this paperwork can take a long time for a homeowner doing it on their own.
You need to do everything right and on time. This way, you can cut the amount of time a short sale takes by a matter of months. In this post you will learn why short sales take so long, and what you can do to speed them up.
What Makes a Short Sale Take So Long in Charlotte, NC?
Multiple factors come into play when processing a short sale in Charlotte, NC. Each of the following contributes to the amount of time a short sale takes. Some of these are within the control of the buyer, but the longest delays are due to the lender:
1. The homeowner must prepare the appropriate documentation. This is the point at which the homeowner prepares the short sale package. This includes documents to prove financial status and evidence of hardship. For example, pay stubs, bank statements, and tax returns. A signed and dated hardship letter should also be in the package. If financial inability was caused by a specific event, there must be evidence to support this. For instance, medical bills, proof of termination of employment, or a divorce settlement. This stage can take quite some time due to the amount of paperwork that needs to be filed. A good Charlotte, NC short sale realtor will be able to help you out with this.
2. The lender will have the property appraised. Your lender will need to have a property valuation done on the house. This will help assess the best selling price for the property. The state of the house, the area, as well as any required repairs, will influence pricing. But, it may take time for the bank to schedule the appraiser. This can increase the timeline of the short sale.
3. The seller needs to find the buyer on their own. Most of the heavy lifting in a short sale needs to be done by the homeowner. Even after a homeowner locates a buyer for their property, it is subject to approval from the lender. This includes the sale price for the home. The lender is the one with money to lose in a short sale. They will want to be sure that the house is accurately valued and sold for as close to that price as possible.
4. The lender assesses the buyer’s offer. If the lender is immediately satisfied with the buyer’s price, that step will be over quickly. But, if not, they may need to engage in negotiations with the client. This involves the lender making counteroffers to secure a better price. These negotiations can sometimes take weeks. If the buyer can not afford or accept the counteroffer for any reason, they may walk away. This means the seller will need to look for another buyer.
5. The escrow period. With the sale of any house, there is usually a 4-week escrow period. At this point, the buyer can get financing, inspections, and the like done. If they are satisfied, they then take ownership of the home.
There can be delays during any of these steps. These can prevent the sale from being closed quickly. A short sale in North Carolina will take months to complete but tends to take 3 to 4 months on average.1.
How to Speed Up a Short Sale in Charlotte, NC?
Nobody wants to have to wait so many months to finish up their short sale. Homeowners with financial hardship are eager to get back up in life. Having to deal with financial hardship and a dragging sale doesn’t help.
Get a capable short sale agent. You can never go wrong by finding a good short sale agent. It is even better if they know your area well. They’ll help you get your package completed on time and find buyers quickly. If they live in the region, they may be familiar with the bank procedure which will make the sale quicker. A short sale agent in Charlotte, NC, is the best choice you can make to quicken things. With an inexperienced agent, it can take close to a year.
Get the paperwork all ready. There’s a lot of paperwork involved in a short sale. A good agent will help you get this ready. It is important to cooperate and retrieve everything requested. A missing page or document can grind the process to a halt.
Be transparent with house issues. If you’ve lived in the home long enough, it’s bound to have some problems. You are not obligated to repair them, but you should inform buyers. Any surprises discovered by their appraiser can cause them to run away. Let them know exactly what they will get.
There are phases of the process that depend on the lender. It will be difficult to speed up. But by knowing what to do, you can speed up the parts within your control.
A short sale can be a very distressing thing to go through alone. There is a financial hardship to deal with and adding confusing paperwork won’t help. Being guided through this process by a Charlotte, NC, short sale agent is important. Hiring an agent like Nancy Braun is the best decision you can make. The sale will be closed much faster, and the stress will be kept to a minimum.
The quicker you have your house sold, the quicker you can repair your credit. Contact Nancy Braun at 704-997-3794 to get started with closing your short sale fast.