In a short sale, Realtor.com explains, the lender who owns the existing mortgage loan on a residence agrees to accept less than what is owed by the current home owner and to release all liens against the property. This, in turn, allows the owner to sell the property for less than what he would otherwise need to pay off the mortgage. A short sale offers a potential buyer an opportunity to purchase a home at a bargain price, but the process can be long and cumbersome. A buyer has a few ways to speed up the process.
You Have Options in a Short Sale
Choose your lender for your short sale. The biggest holdup to any short sale on the part of the buyer is the process of financing the home. The mortgage approval process can take six weeks or longer.
Be prepared with needed documentation. A lender will need income statements, tax returns, pay stubs and bank account statements. Additional documentation may be required if, for example, the borrower pays child support. Respond to your lender's requests for information in a timely manner. Speed up the process by answering questions quickly and efficiently.
Look for short sale properties with minimum amounts of financing attached to the deal. If the short sale property has more than one mortgage attached to it, or there is mortgage insurance tied to the mortgage, the transaction will be more complicated.
Hire a real estate agent who is familiar with the short sale process, if not an expert. The more times the agent has been through this process, the more likely she will be to know how to speed up the process even more.
- Thinkstock Images/Comstock/Getty Images