A Typical Short Sale Time Table In Virginia


A Typical Short Sale Time Table In Virginia
By Scott Rogers • November 5, 2009
Earlier this week I attended an educational session put on by the Virginia Association of Realtors in regards to Short Sales which was very informative! I am currently representing a buyer who has a contract on a house that will be a short sale, and I am currently representing a seller whose listing will likely result in a short sale. Thus, in addition to being quite interesting, the top down overview prepared me to better represent my clients. First, my simplified definition of a short sale is any home sale where the proceeds will not provide the sellers with enough money to pay off the mortgage(s) in full, and where the sellers can't come up with the rest of the money themselves, and where the bank agrees to release the lien against the house anyhow, even though they aren't being paid in full. One very helpful part of our training session was an explanation of the typical foreclosure timeline (shown below) and how and when a short sale can fit in to prevent the foreclosure. Click on the image above for a larger JPG version of the timeline, or click here for a PDF version. As you can see, above, when a homeowner knows they are headed towards foreclosure there is often still plenty of time to attempt to arrange a short sale rather than to simply wait for the foreclosure to transpire. Yet at the same time, as the foreclosure (trustee sale) looms nearer and nearer, the possibilitiy for a short sale diminishes. What else do you need to know about short sales and foreclosures? A LOT! If you're selling at a loss, but have the money to pay off the balance of the loan yourself, the bank won't permit a short sale. If you defrauded the bank when you applied for and received the mortgage (overstating income, etc) you likely won't be approved for a short sale. Lenders usually takes 30-90 days (or more) to provide a conclusive answer on whether they will approve a short sale. Lenders won't give you a concrete answer up front as to whether they will approve a short sale --- once you have a contract in hand, they will examine the proposed deal and decide whether to approve it. To be approved for a short sale by your lender you (among other things) must prove financial hardship and show that the proposed deal is generating the best possible sale price. Short sales can provide for great opportunities for buyers, but you must be willing to be patient and work through convoluted and tedious processes. Feel free to ask questions about short sales and foreclosures below. I will continue to examine these issues from time to time. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 22, 2024 (unless otherwise noted).
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