Understanding the Minnesota Short Sale Process
The short sale process can be a lengthy and confusing one, especially if you are not familiar with the real estate market. If there is a potential buyer for your home and, with the help of a qualified short sale agent, you are able to start the short sale process. In general, you can expect the following from the MN short sale process:
- First of all, a purchase agreement will be made up which details the short sale that the lender will need to approve. This purchase agreement will include the sales price which will determine how much the lender will net from the sale.
- As a home owner, you will need to write a letter outlining your financial hardship. You will need to include any proof including bank statements, medical bills, pay slips or termination letters. The reason for this is because, in order to qualify for a short sale in MN, you will need to demonstrate you are in financial turmoil.
- Once the purchase agreement and your letter have been sent through, the lending company will arrange for your house to be appraised to determine the BPO. This will give them an indication of the market value of the house so they are prepared to make a decision on your short sale. You can expect the appraisal to take a few weeks.
- Once the BPO has been decided, the lending company and the real estate agent will then negotiate to see if a short sale is possible. The home owner does not have to be involved in this. Instead, for the home owner as well as for the potential buyer, it is a matter of staying patient and waiting for the decision. This could take several weeks.
- If the short sale is approved, then the transaction will go through like any other real estate transaction. You will have a certain time to move on and your buyer will take possession of the home.
Due to the complexity of the situation, the whole short sale process can take up to 60 days or maybe even longer. Because of this, it’s important act fast when determining if a MN short sale will work in your situation. If you have received notice that your home will be foreclosed in less than a month, then you may have left it too late.
Another thing to consider in a short sale in MN is that the sales price of the home is actually useless to the home owner. Although we all want to see our home sold for a profit, the money will go directly to the lending company and thus the offer is simply a number and nothing more. This can be seen as a great advantage to a short sale deal- for once, the price is not important and you do not have to negotiate with the buyer. This can save you a lot of stress that comes from the real estate negotiation process. In a short sale, all the negotiating is left to a professional and you are able to concentrate on providing for your family and staying out of debt as best as possible.
Call a Minnesota Short Sale Expert: 763-447-3925