by Brian Burke
on Monday, November 30th, -0001 at 12:00am.
Denver Short Sales
A short sale in Denver is a transaction where the seller's mortgage lender agrees to accept a payoff that is less than the balance due on the loan, usually as an alternative to foreclosure. The process is extremely complicated, and a short sale can be difficult to negotiate and achieve, as banks will look out for their own interests. Here is the basic gist of the short sale process:
Eligibility for Denver Short Sale Banks will only grant short sales if the seller a) owes more on the mortgage than the house is worth, and is experiencing some kind of hardship, such as:
–Unemployment –Loss or reduction of income –Divorce –Out-of-town job transfer –Bankruptcy –Death
Banks require sellers to submit a financial package for review to determine whether a short sale can be granted. The required documentation varies by bank, but here is some of the paperwork that might be required:
–A letter explaining the seller's hardship –2 years of tax returns –2 years of W-2s –2 months of bank statements –Comparative market analysis or list of recent comparable sales
Accepting and Submitting an Offer When the seller accepts an offer, the selling agent will have to send additional materials to the bank for approval. This may include, among other things:
–Listing agreement –Executed purchase offer –Buyer's pre-approval letter –Copy of buyer's earnest money check
It can take quite a long time for the bank to approve the short sale. Both the seller and buyer will need to be patient and keep updated themselves updated on the bank's progress.
Please contact us if you have any questions or to request a free consultation about a Denver Co. Short Sale or any Real Estate Transaction.
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Brian Burke | Broker | ePRO | Expert | 303.955.4220 Office | 303.710.2609 Direct | Brian@kennarealestate.com