In recent months, the federal government (U.S. Department of Treasury) has implemented some changes that benefit homeowners who are pursuing a short sale, along with those who opt to buy these distressed properties. So in today’s article from The Short Sale Gal, Kristine Zelazo, we’ll explore the federal changes and their impact on short sale buyers and sellers.
New Rules and the Impact on Short Sale Buyers and Sellers
One of the most significant points surrounds the $1,500 sum that is provided to homeowners who are selling their home in a short sale.
Typically, the homeowner who opts to pursue a short sale is experiencing serious financial difficulties, which means that they’re unable to foot the bill for a move. This can leave many homeowners in a very difficult position, with no money to rent a moving truck or purchase moving boxes and packing supplies. And then there’s also the down payments required to rent an apartment or home.
So this $1500 allowance for homeowners can literally be a game changer for many families who may otherwise be left in an extremely difficult position, unable to move or secure a new home due to a lack of funds.
Other changes that were implemented by the federal government in recent months include the following:
- The lender must approve or decline offers within 10 days.
- The seller must be provided with a minimum of 45 days from the date the home comes under contract for the sale to the closing so as to avoid a situation where a homeowner is literally kicked out to the curb without an opportunity to move out their belongings and find another home.
- Up to $3,000 can be used to pay off so-called junior lien holders.
- Lenders are no longer allowed to charge a fee to borrowers who decide to pursue a short sale instead of a foreclosure.
In addition, in an attempt to prevent market inflation, the U.S. Department of Treasury made the determination that any property purchased in a short sale cannot be re-sold within 90 days. So buyers must wait a minimum of 90 days before they “flip” the property. And while this may seem like an inconvenience to real estate investors, the reality is that home improvements can take significantly longer than 90 days (and finding a buyer can take much longer).
Trust The Short Sale Gal Kristine Zelazo to Help With Your Real Estate Purchase or Sale
There are a number of unique steps and processes involved when buying a short sale or when opting to sell your home through a short sale instead of a traditional real estate transaction. You’ll have lots of advantages in this regard when you work with a short sale expert like Kristine Zelazo, better known as The Short Sale Gal — and that includes a faster and easier sale!
If you’re seeking to sell your home as-is to an investor or wish to pursue a short sale transaction for the sale of your property, turn to Kristine Zelazo, the Short Sale Gal!
To get started, simply complete the home pre-sale form to provide Kristine with additional information on the property in question. Questions? Call 800.664.0616, x802.