What is a Short Sale?

What is a Greater Mansfield, CT Short Sale?

A short sale occurs when a property is sold for less than it is worth. A lender’s approval is required for a short sale to take place. In addition, a specific process must be followed:

  1. The homeowner must be behind on payments and facing foreclosure. 
  2. A set of documents must be filled out that proves the homeowner is no longer able to make mortgage payments. In addition, homeowners usually have to write a hardship letter, which explains why they’re in financial distress.
  3. The homeowners must demonstrate that they’ve tried to sell their home at full market value by providing a detailed report of the sales activity.
  4. If the lender approves the short sale after receiving the necessary documentation, the homeowners can start marketing their home as a short sale. Once they’ve found an interested buyer, the two sides agree on a price. From there, the regular real estate transaction process continues.

In most cases, the lender will pay for nearly all of the seller’s required fees and commissioners. Typically, the homeowner walks away owing nothing on the home. However, they are prohibited from making any money from a short sale.

Short sales generally take between 3 to 12 months to complete.

Given all the red tape that comes with a short sale, it’s important to work with an experienced Mansfield area REALTOR who can help guide you through the process.

That’s where  Home Selling Team can help!

The Greater Mansfield Area Short Sale Process

When you work with the Home Selling Team on your Mansfield area short sale, you’ll receive expert advice at every step of the short sale process:

The Preparation Phase:

  • These experienced Connecticut REALTORS will visit the property to answer any questions you may have about any of the required short sale documents.
  • They’ll also create a virtual tour of your home as well as take still photographs in order to effectively market the home.
  • In addition, the Home Selling Team will prepare a damage and repair review in order to identify those issues with the property that may be used during negotiation with the lender. 

The Marketing Phase:

  • The Home Selling Team will list the property on MLS 
  • Next, this Mansfield area team of REALTORS will implement their aggressive marketing strategy immediately. 
  • Your Connecticut REALTOR will also start regularly communicating with your lender to ensure the short sale process goes smoothly.
  • In order to find a buyer in as little time as possible, the Home Selling Team will schedule showings as much as possible and lower the asking price at reasonable intervals.
  • Once a prospective buyer submits an offer, the Home Selling Team will ask you as the homeowner to review and sign the documents. Then, it will be send to the lender.

The Lender Negotiation Phase

  • If the lender accepts the offer, it will be signed and a contract begins.
  • From there, the homeowner will need to submit current copies of bank statements and paycheck stubs to the lender
  • The Home Selling Team will follow-up to ensure that all necessary documents within the Short Sale package have are submitted to the lender.

Once all the documents have been submitted and approved by the lender, the usual closing procedures begin:

  • The buyer will make final inspections
  • The homeowner will vacate the property by an agreed upon date
  • The two parties will schedule a closing with a title company
  • The homeowner will turn over all keys and remotes to the buyer at the closing.
  • The title will be transferred and the new owner moves into the home.
  • The lender issues a mortgage satisfaction to the seller, which is recorded in public records

Your Connecticut Short Sale Real Estate Experts

Short sales can be a cumbersome process, especially given all the paperwork that’s needed to complete one.

For help on making the short sale process as seamless as possible, contact us at  Home Selling Team. We specialize in completing short sales in Mansfield, Coventry and Willington, as well as surrounding areas.