Buying Or Selling Short Sales In Logan Utah? Common Questions Answered
When buying short sales in Logan Utah, the process can be long and frustrating for all parties involved. From contacting the listing agent, most of them never answer their phones, to waiting for an answer to your offer from the bank the; whole process can be quite overwhelming at times.
If you're trying to sell your Logan home short, the process is draining and confusing, not to mention the fact you don't know if it will work out until you sign the final closing papers. Either way, short sales are a complicated process. Here are a few questions and insights into the short sale process for both buyers and sellers.
Buying Logan Utah Short Sales
Where Do I Start?
When buying a short sale your first step is to find out as much about the property as possible. You can do this by having your real estate agent check the public records on the property. Things like, how much does the seller owe, is the home facing foreclosure, has the bank issued a notice of default can all be used when negotiating an offer.
Be sure to check on the amount of loans on the property. This is crucial to getting a short sale approved. If the home has more than one loan, in order to get a short sale closed, both lenders will have to agree to the offer price. For example, if the first loan is $120,000 and the second one is $20,000, offering just $120,000 will leave nothing for the second lender. That means the first lender will have to give something to the second lender for it's cooperation.
A great short sale agent knows this process fairly well. It's important for you to take the necessary steps to qualify your agent first before you proceed. If you're looking to purchase Logan short sales or other homes in the Cache County area being sold short, we at the Platinum Real Estate Group can ensure you get the information needed on a short sale property.
Buying Logan Short Sales Takes Time
Once you've found the right property, you'll need to find out a few things. Does the home have any offers? If so, has an offer been submitted to the bank? Has the bank approved an offer price? Knowing if the property has offers and if the bank has approved a price are crucial aspects to buying Logan short sales.
Also, keep in mind short sale agents will try to procure multiple offers in order to protect their sellers from foreclosure. If the home has multiple offers you'll need to be aggressive if you plan on winning the bidding war. If you don't want to bid against other offers, short sales probably aren't the best choice for you.
Once you've submitted your offer, you're going to have to play the waiting game. On average it takes banks 1-2 months to approve an offer price. During this time, you can't really do much other than wait it out. And, once you get notice from the bank, you'll still need to leave time for your inspections, appraisal, and financing to be in place. All in all, short sale take anywhere from 3-6 months to close, so be prepared to wait it out.
Selling Logan Utah Short Sales
What's The First Step?
If you're thinking about selling your Logan home as a short sale you'll need to prove to your bank you have a financial hardship. You can't just short sale your home because you don't want to make the payments anymore.
A few valid reasons to short sale include loss of your job, decreased income earnings, divorce, death of spouse or primary income earner, business failure, military service, job relocation, large medical bills, and some others but these are the most common.
To prove to the bank you have a valid hardship, you'll need to write a personal letter explaining the hardship in great detail, also known as a hardship letter. In your hardship letter you'll need to focus on three components: Say you're sorry, your hardship circumstances, you've tried everything and your only options are short sale or foreclosures. It should be handwritten legibly, signed, and dated.
Your letter is just the first documentation in your entire short sale package submitted to the lender. Other things you'll need include an authorization to release information form, supporting financial information, a comparative market analysis, marketing history like showings, advertising, and feedback, and a copy of a listing agreement with your agent.
Logan Short Sales Done Right
Completing a successful short sale is no easy task. There are a lot of things that can go wrong leaving the seller facing a foreclosure and many agents have no clue how a short sale should be done. For example, before you submit an offer to the bank for approval, it's important to screen the buyer. Knowing the buyer will stick around for the entire process is key.
We know how a short sale is to be done. Just like a normal transaction, you will need to sign a contract, and force the buyer to deposit earnest money. Earnest money upfront is an incentive to keep the buyer around from start to finish. If buyers are walking away while your agent tries to negotiate with the bank, you could go into foreclosure!
Some agents also think it's a good idea to submit multiple offers to banks. This is the wrong way to do a short sale. By doing this there is no mechanism to hold a buyer to a deal and it has the potential to fall apart. As a seller, you should be looking to lock up the most qualified buyer and keeping them around to close. So, don't put your financial well being into the hands of an inexperienced short sale agent.
This is just a brief overview of the short sale buying and selling process. There are so many details involved I could write a book! Be sure, if you're looking to buy or sell Logan short sales, you contact the Platinum Real Estate Group to watch out for your best interests. We are happily helping buyers and sellers complete successful short sale transactions everyday!
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