Mount Pleasant Short Sale Transactions - FAQs
As you would expect, there are lots of buyers looking for great deals in the Mount Pleasant real estate market. And why not? As long as the Mount Pleasant home inventory remains relatively high, sellers face a lot of competition for the buyer's attention. For some sellers, it is imperative that they sell their homes quickly. For these sellers, the short sale may be their best option.
Simply put, a short sale is a transaction in which the seller's mortgage lender(s) agrees to accept less than the balance due on the loan at closing.
How Does a Short Sale Benefit Buyers, Sellers & Lenders?
- For the buyer, it may represent an opportunity to purchase a home at a deep discount to the market.
- For the seller, it's a much better alternative than foreclosure. There is less impact on the seller's credit and it also provides a way for the seller to salvage some dignity and avoid the public embarrassment that a foreclosure sale can sometimes bring.
- For the mortgage lender, a short sale can be a less costly solution than foreclosure, particularly in a market with declining prices.
The Approval Process Can Be Lengthy
If you are considering a purchase of a Mount Pleasant short sale property, it is important to know that obtaining the lender's approval can be a very painstaking and time consuming process. There are many dynamics that can cause the process to be lengthy:
- Lack of sufficient lender-required documentation from the seller
- Lenders tend to have very over-worked and under-staffed loss mitigation departments
- A 2nd mortgage on the property requires additional paperwork and time. In addition, the 2nd mortgage lender will have to be satisfied with the payoff before the closing can occur.
- Impatience on the part of the buyer - many buyers just get tired of waiting on bank approval and then move on.
As the number of short sale transactions increase in the Mount Pleasant real estate market, it is increasingly challenging for lenders to review all of the requests in a timely fashion. Some are better equipped to handle the volume than others. Most banks will require 90-120 days to process a short sale request once an offer is presented. In some cases, the process can take as long as 6-9 months!
Patience with the Short Sale Process May Be Rewarded
A high degree of patience is required on the part of buyers and sellers in order to achieve a positive outcome. However, as challenging and time consuming as the process can be, the short sale can be a great solution for all parties involved.
If you would like more information on the short sale process or if you have a home that may be a candidate for a short sale, please contact us. We will be happy to help.