Are you thinking of short selling your home?

A short sale happens when the loan on the home is larger than the home’s worth, minus all the sale expenses. In this type of real estate transaction, the seller is asking the bank to take less than the amount owed.

Getting approval for a Long Island NY short sale is not a walk in the park. In fact, people will tell you that it can be a long and uncertain process.

Here are some reasons why short sales may seem like a slow transaction.

1. Seller information packet delays

To short sell your home, you must apply for it as the seller. The process will formally begin when the bank receives a complete application packet from you. The packet includes a hardship description, tax forms, pay stubs, and other related documents.

Short sale transactions typically require extensive documentation. Some sellers are not good at record keeping and many times, bank statements, pay stubs, and tax returns take time to locate. Nothing will happen with the short sale until the seller submits everything. If you want to expedite the process, you need to submit the complete application packet in a timely manner.

2. The seller’s bank must review the short sale package

Another reason why a short sale takes too long is because the seller’s bank needs to review the short sale package submitted by the seller. The lender will want to check the seller’s debts and assets and review their credit score and the contract to purchase the home. The bank will not approve a short sale if the seller still has assets that can be used to pay off the loan.

3. There can be multiple decision makers

Just because you pay your mortgage to a particular bank does not mean that they own the loan. It is likely that they are servicing the loan on behalf of loan investors or other mortgage investment funds.

Most of the time, a large bank servicing a loan is given delegated authority to make decisions on a short sale. The investor on the loan can give the bank the authority to approve a short sale within a certain price range. If it is out of the given range, the bank will submit the documentation and approval requirements to the loan investor. The investor will look into it and will be the one to decide.

4. Documents can get lost and signatures are left blank

A short sale package requires hundreds of pages of paperwork. Many of those pages require signatures from sellers, buyers, and agents. If a single page gets lost or if one signature is left blank, the document will not be processed.

In addition, there are times when it takes a month to get a response from the bank, informing you that things are missing.

A short sale is not a task to be undertaken by just any real estate agent. If you want to speed up the process, you need to work with an experienced Long Island short sale agent. If the agent isn’t experienced in short sales, chances are this process will drag on and on.

Visit my website https://LongIslandShortSaleAgents.com/ for more information regarding short sales.

Call me, Rene Perrin, at 516-802-3785. I can handle all the challenges of short selling your home and prevent you from falling into the many pitfalls that can cause unnecessary delays in the process.