Short Sale - Short Sales in Denver Metro Area - Part 1
Short Sales in Denver - Part 1 - Introduction
Frequently Asked Questions about Short Sales in Denver
What is a Short Sale?
In short, the Short Sale occurs when a lender is willing to accept less for the loan than what is owed by the borrower to pay off the loan. Each lender uses their own criteria for accepting a short sale.
Why are some homes sold as short sales?
A home owner who has a mortgage on their home and no equity may be able to list their home for sale as a short sale. There are several criteria that need to be met in order to qualify for a short sale. More on that later... But basically the value of the home has declined (in some areas more than others) since purchasing the home. For Example, the owner bought the home for $500,000 two years ago, but the current market value of the home has gone down to $350,000. It would be impossible to find a buyer to pay the $500,000 in the current market.
How long does a short sale process take?
It depends. Each situation is unique and different, and the key word for both buyers and sellers involved in a Short Sale isPATIENCE. You should expect at least 60 days to go through the process, yet occasionally you may be able to close in 30+ days and often it will take months to even get an answer. Each negotiator at the Loss Mitigation Department of a Bank is often working several hundred files at the same time! To speed things along, the seller is requested get all the required documents ready before listing the home.
What are the legal and tax ramifications of a Short Sale?
Please consult an attorney and a tax accountant for information about any and all legal and tax ramifications of a Short Sale and if this is the right choice for you. Disclaimer: This post does not intend to be or provide any legal or tax advise.
To be Continued... Part 2: Sellers - Documents needed to Request a Short Sale
If you have any specific questions about Short Sales feel free to contact us at any time. When listing your home as a short sale you want to make sure the listing agent knows how to do Short Sales. We have three people dedicated in staying on top of each Short Sale process from the beginning to the end.
|Contact Brian Burke, Managing Broker with Kenna Real Estate @ 303.955.4220 to list your home for sale or to purchase a home in the Metro Denver Area, including Douglas County, Castle Rock, Highlands Ranch, Lone Tree, Littleton and Parker. Now accepting your referrals.
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