Wednesday, February 8, 2012 / by Lynn Horner Baker
North Metro Atlanta The most likely reason why a bank would accept to issue an extension on a short sale is because the bank prefers to do the short sale over the foreclosure.
This is a reason why your agent needs to continue to tell them on why the short sale will be beneficial during the entire process.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
The biggest reason a short sale is beneficial is because banks usually make 10-20% more on a short sale compared to selling a property after foreclosure.
Besides, the further out the foreclosure date is, then the more beneficial the short sale. That is because the bank gets to sell the house today, rather than 12-18 months down the road.
The savings can be quite substantial when you sit down and add them all up. Doing a short sale and selling the property now makes more financial sense for the bank than a foreclosure.
An extension to the closing date of a short sale is a major request for the bank. Not every bank will accept such a request.
Here are some steps you may take to increase your chances that the short sale bank will accept to give you the extension:
* Present a guaranteed closing date. You need to be ready first, and then ask for the extension. This means that the buyer's lender has approved the loan and will be ready to fund once the short sale approval is extended.
* Sign an addendum extending the closing. The short sale lender may want assurance that all parties to the short sale transaction are still interested and ready to close. Sending an addendum to the bank that is signed by all sellers and buyers proves that everyone has agreed to the extension.
* Submit an updated preapproval letter and / or proof of funds from the buyer. You need to show the bank that the buyer is still qualified and ready to close by submitting an updated preapproval letter. Do not assume that the letter you submitted at first will serve the same purpose.
* Be professional and treat the negotiator with respect. Explain the reasons behind the delay and assure the negotiator of the date by which you will close. Do not demand the extension.
* Be prepared to pay for the privilege. An extension by the short sale bank is a privilege, not a right. Some banks might charge the buyer for every day they run past the original closing date.
That fee could be $100 a day or more. The buyer needs to be prepared to pay if they can't close on time. Thinking about a short sale?
I can help you short sale your property and get back on your feet. Send me an e-mail at Lynn@HornerBakerPartners.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 770 579-4060
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our North Metro Atanta loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, Lynn Horner Baker.
Lynn is a Real Estate Agent and Horner Baker Partners. North Metro Atlanta Short Sales Realtor:
Phone: 770 579-4060. Lynn@HornerBakerPartners.com.
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