Wilmington NC Short Sales – Important Information Homeowners Should Acknowledge PART TWO

Wilmington NC Short Sales – Important Information Homeowners Should Acknowledge PART TWO

PLEASE CLICK HERE FOR PART ONE

Common Short Sales Process Used by Most Lenders 

Although the actual process that is commonly used in short sales may vary from one lending firm to the next, it is generally pretty much the same across the board. When most homeowners compare short sales vs. foreclosure it generally is agreed that short sales is the better option. The common short sales process is as follows:

1. The first step is to consult with the lending institution holding your mortgage so you can discuss the options available to you using short sales. This is when homeowners will gain short sale information from the lender in regards to the specific process they will need to follow to complete the sale of their property.

2. This step involves homeowners sending a letter to the escrow agency and the property buyer that will list their detailed short sale information and authorizing the release of this information.

3. The settlement statement holding the short sale information will be reviewed by the lender. The statement includes information on the short sale that includes the price the property will be sold, an itemized list of expenses involved, balances on loans that remain and any other fees that may be applied to the closing of the entire process of short sales.

4. Short selling a property requires that homeowners write a ‘letter of hardship’. This should include in-depth details in regards to financial difficulties the homeowner is facing. Other items the lender will also need to see to validate the necessity for short sales would include information of investment accounts, checking and savings accounts, pay stubs from the employer and any other financial records that would indicate validity for a short sale.

5. The overall condition the property is in, as well as the prices of homes of comparison that will determine a fair market value will be obtained by the lender through information the broker supplies.

6. All aspects of the short sales agreement will then be scrutinized by the mortgage lender. This is to determine that the amounts and conditions are reasonable and to ensure the commission on the real estate is acceptable.

NILESH JETHWA
WILMINGTON NC SHORT SALE EXPERT

http://www.shortsalewilmingtonnc.com/



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Wilmington NC Short Sale: Recourse And Non-Recourse Loan

Do You Know The Difference Between Recourse And Non-Recourse Loan?

This is one of the most important things to know when you are considering short sale, what type of loan you have and what is the difference between recourse and non recourse loan.

When you purchase your home, most loans are considered as nonrecourse loan or it’s also called purchase money loan, which is secured only by the home and you are not personally liable for the balance if you do a short sale.

But when you refinance your previous loan then it is considered as recourse loan. Most second loans and home equity loans (known as HELOC) are also considered as recourse loans, which mean you are personally liable for the balance when you sell your house or foreclose and if the sale doesn’t cover all your loans.

Now, whether its recourse or nonrecourse, it also depends on the lenders, some lenders follow homeowners to collect for the remaining balance based on their business decision even on nonrecourse. It also depends on whether your state is a deficiency or non-deficiency state. It’s a whole different topic (deficiency and non-deficiency) which I will explain in my next blog.

If you are not sure whether you loan is recourse or non-recouse loan, then you can either check your loan note or check with your loan agent. So, it’s always good to know the difference between recourse and non-recourse loan.

If you are considering short sale then consult with CPA or tax attorney for any tax ramification before you list your house with any realtor.

You can reach me directly at (910) 622-0319 with any questions, I would be glad to assist you. Please Visit my website shortsalewilmingtonnc.com .

 

Nilesh Jethwa

Wilmington NC Short Sale Expert

Wilmington NC Short Sale, Foreclosure Option

The Most Important Thing in Short Sale Transaction

Posted by Nilesh Jethwa ( Wilmington NC Short Sale Specialist) 

As a Certified Short Sale Specialist in the Wilmington area, after handling several short sale transactions, I know there are lots of things which make the successful closing of a short sale listing.

As you all know that the successful closing of short sale needs an experienced short sale real estate agent who knows what all the steps to take in order to move the short sale process successfully towards closing.  One of the important things is to submit the short sale package correctly at the first time itself which will save at least 2-3 weeks of times but there’s one more things which makes the transaction to close successfully, just keep reading, you will know that shortly… 

Most of the agents know what all documents to submit to the bank for short sale approval but still you will see that many listings still on the market for more than 6-8 months or it expires from the market with no buyer and even if they get buyers, there’s no answer from the bank and the buyer doesn’t know why it takes longer time or any status on their offer. After reading the above lines, I’m sure you have figured out what is the most important thing in a short sale process – Yes! You guess it right, it is “Communication”! This is where most of the agent fails in short sale.

If there’s no proper communication then deals can fell apart even if you start everything perfectly in the beginning. This is one of the big problems in short sale process and especially after getting an offer from buyer. If the seller’s agent doesn’t communicate properly with buyer’s agent then buyer’s agent cannot explain to the buyer, what’s going on with their offer and if the buyer doesn’t know what’s going on after several weeks, they will lose interest and will look for some other houses. 

If there’s any lien like home owner association (HOA) then you need to communicate properly with them also to close the short sale successfully. Also at the same, you should communicate properly between the title officers and sellers lender (if more than one lender, then need communication with all the lenders).

Short sale is a complex sale, so it is really important that you work with an experienced agent in short sale to sell your house. As you figured out that in short selling your house, it is not just finding a buyer and negotiate with your bank, you need to communicate timely with all the parties involved like buyer, seller, agents, bank, escrow officer, home owner association(if any) and any other lien holders.

All the things are important in successful short sale process like proper documentation, marketing of the house and finding a buyer etc., but in my experience if there’s no communication between all these parties then you cannot close the short sale successfully. So, the most important thing in short sale transaction is “Communication”.

If you are in the Wilmington and Leland area and looking for an experienced short sale agent then call me at 910-622-0319, I would be more than happy to assist you in any way I can. www.shortsalewilmingtonnc.com.