Short sales are still here and it doesn’t look like they will be going anywhere anytime soon. I have been writing a few posts to help people better understand the nature of them. Part one of the work flow is here and this one touches a little bit on what elements come into play to make sure that a Minnesota short sale is successful.
Most Minnesota short sales are not successful these days and if you are going to do one, make sure it is done right. The best thing to do is make sure there is a pre-negotiated price that the lender will accept before the property is listed.
If a Minnesota short sale is going to be successful, certain elements need to come into play
- A hardship occurs and the homeowner has no way of being able to keep the property
- The obvious one is that the property is worth less than what is owed on the mortgage
- The lender then needs to contacted and be willing to do a short sale
- All materials (hardship package) are presented to lender to justify short sale
- Property is listed with real estate broker/agent and marketed
- Offer is made on a property and accepted by seller. Then approved by lender with a short sale package
No Proceeds
Because the house was a short sale, no proceeds will be given to the home seller. Make sure to check with necessary people for legal or tax implications.
