Your Short Sale Questions Answered
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Fred Sed
Fred Sed of The Pahua Group specializes in buyer & seller representation of foreclosures/bank owned REOs and tenant representation of Orange County Rental Properties. Fred also specializes in the representation of homeowners in distress by way of Short Selling. For more about Fred visit: http://activerain.com/fredsed and Short Sale FAQs.By Fred Sed
Published on 10/19/2008
More short sale questions answered by resident short sale expert Fred Sed.
How Long Does a Short Sale Take, I Need to Get Out Now!
First it comes down to how prepared you and your broker are in this situation. If your broker or short sale specialist is experience then you will have the quicker turn around. Also it depends on what banks you have your loans with. Meaning if you have your mortgage with a smaller bank who does not have as many defaulted loans then the approval should take 30-45 days to receive.
But if the bank who has your mortgage is a larger bank, meaning they have a large amount of defaulted loans then it could take up to 60-90 days for the approval.
This is very important. This complicated process takes time so to have the option of a short sale, you must act soon. If you wait until 1 week before eviction, no one can help you do a short sale. It is simply impossible. DO NOT WAIT.
Why Do I Have to Sign a Borrower's Authorization?
In order to both determine if your lender will consider a short sale and then to actually negotiate the short sale, your broker needs be able to speak to your lender about the mortgage. The lender will only speak to people you have authorized them to speak with.
By signing a Borrower's Authorization, you give the lender permission to speak to your broker about your loan. That is all it does, but it is necessary. At the Pahua Group we require that an authorization be filled out for each mortgage. That allows us to respond in a timely manner.
Tune in next time when I talk about how I earn income on short sale and whether or not I can give any of it to my clients.
First it comes down to how prepared you and your broker are in this situation. If your broker or short sale specialist is experience then you will have the quicker turn around. Also it depends on what banks you have your loans with. Meaning if you have your mortgage with a smaller bank who does not have as many defaulted loans then the approval should take 30-45 days to receive.
But if the bank who has your mortgage is a larger bank, meaning they have a large amount of defaulted loans then it could take up to 60-90 days for the approval.
This is very important. This complicated process takes time so to have the option of a short sale, you must act soon. If you wait until 1 week before eviction, no one can help you do a short sale. It is simply impossible. DO NOT WAIT.
Why Do I Have to Sign a Borrower's Authorization?
In order to both determine if your lender will consider a short sale and then to actually negotiate the short sale, your broker needs be able to speak to your lender about the mortgage. The lender will only speak to people you have authorized them to speak with.
By signing a Borrower's Authorization, you give the lender permission to speak to your broker about your loan. That is all it does, but it is necessary. At the Pahua Group we require that an authorization be filled out for each mortgage. That allows us to respond in a timely manner.
Tune in next time when I talk about how I earn income on short sale and whether or not I can give any of it to my clients.