Minnesota Short Sale Expert

For homeowners who owe their mortgage lender more than what their home is actually worth, a short sale has become very popular and may be one of the best choices for a homeowner who is facing foreclosure, delinquency or default on their loan. According to the Today Show on NBC, 12% of home sales have been short sales this year.

With a short sale, a struggling homeowner is given the opportunity to start over. This can be a great opportunity for the buyer and seller, if in fact the sale ever closes. Over half are said to never close and the ones that actually do, take many months.

Banks state that the process of a short sale is just taking too long because both employees of the banks and real estate agents are having to learn the process as they go. Taking four to six weeks is very common and three months is not very uncommon. There is no typical buyer who is able to wait that long to receive a response from a buyer.

The federal government is trying to speed up the process of short sales and a new rule has been issued by the Treasury requiring lenders to respond to a short sale offer within just 10 days. By April 5, this rule will apply to 83 loan servicers who are currently participating in the Home Affordable Modification Program created by the President, including Wells Fargo, Bank of America and JPMorgan Chase. It is very hopeful that the entire lending industry will adopt this 10-day rule for all of their short sales.

The plan to quicken the process will also include incentives that will be given to the lender as well as a $1,500 moving allowance to the borrower of the loan. People who are holding a second lien will be given up to $1,000 to give up their claims. Wells Fargo has been able to cut their turnaround time for short sales from 90 days to 30 days by putting together a guide from real estate agents and adding procedures that will help handle requests of short sales.

For a homeowner to be successful in the purchase or sell of a short sale, he or she must find a real estate agent who is experienced in this area and has a proven record in closing on these particular types of transactions quickly.