How to Make a Short Sale Happen

by Mesquite Realty on June 6, 2009

mesquite Nevada home seller buck schaeffel

Many of the people that come to our office ask for a list of Mesquite  foreclosure and short sale properties or a list of Beaver Dam and Scenic Arizona foreclosures and short sales. I have already discussed buying a foreclosure property in a previous blog entitled 9 steps to buying a foreclosure property. So I thought I would dedicate this one to obtaining Mesquite real estate via a short sale.

Mesquite Short Sales

A short sale happens when a home owner sells their home for less than they owe on the property. Many times this involves second and third lien holders as well as the primary lien holder. This does not only happen in Mesquite NV, but all over the country. The home owner (seller) may receive and accept an offer on their home subject to the primary lenders approval. If  the seller has not done all the necessary work with their lender prior to accepting an offer these types of sales can take a long time to get answers, three to six months is not uncommon. Your Mesquite real estate agent will guide you through the process of one of these types of purchases following is short version of a typical Mesquite short sales.

1. The buyer writes up an offer to purchase on a property that is advertised as a short sale through a local Mesquite real estate agent. The buyers agent will present the offer to the selling agent or with the selling agents approval directly to the seller.

2. After receiving the offer, the seller usually accepts the offer from the buyer and an escrow account is opened. The seller will also send an addendum to the purchaser agreement to the buyer notifying the buyer that this is a short sale and is subject to approval from the lien holder. This addendum (when signed by both the buyer and the seller) becomes part of the purchase agreement. In most of these addendum’s as the buyer you are authorizing the seller to keep marketing the property and they can accept additional offers even though they already accepted your offer (discuss this with your Mesquite Realtor).

3. The escrow company submits the offer to the primary lender for review. The lender then takes several time consuming steps to process the offer.

A. The lender will request a complete financial statement from the seller, confirmation of employment and a letter of hardship.

B. The lender then assigns the file to their loss mitigation department and a decision is made whether or not to proceed with a short sale. The loss mitigation will then order an appraisal to determine the properties value.

C. The lender can decide to move a head with the foreclosure process instead of the short sale.

The above steps can take three to four months at which time the loss mitigation make the determinate to negotiate a higher price or just accept your offer. Be prepared to wait a long time for one of these types of sales to come to fruition. You can save money on the purchase of Mesquite real estate in this manner, if you have the patience. It is imperative that you use a knowledgeable Mesquite Realtor when you purchase a short sale. Your Mesquite Realtor will navigate you through the pitfalls encountered here. Feel free to contact the Mesquite Real Estate Team for any questions your have regarding any real estate transactions.

Article written by Mesquite Realtor Buck Schaeffel. The Mesquite Real Estate Team from Bowler Realty is a licensed realty office in Mesquite NV. We are fortuenate to have a Certified Foreclosure Specialist (CFS) working with us.

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