Buying a Short Sale in Hawaii
There’s a saying I’ve come to understand more and more over the last couple of years:
“There’s nothing short about a short sale.”
Unfortunately, this statement has been proven to be true many, many times, but it’s not all bad news. Over the last year, things have gotten just a little easier. In many cases, there are steps that can be taken to reduce the time it takes to complete a short sale.
Behind the Scenes of a Short Sale
Some banks, like Bank of America and Wells Fargo, have enlisted the help of an online service called Equator. Equator is a website operated by an independent third party that is designed to streamline the short sale process. How does Equator help? Your real estate agent signs up for a free account on Equator where they can monitor the progress of their short sales. The negotiator for the short sale lender also uses Equator to email the agent, request additional paperwork, and generally conduct other matters of the transaction. This process has made it clear on what is expected of the real estate agent, and ultimately, the Seller. Bank of America even has a section on their website for agents where all the required paperwork is available to the agents.
Even with the advances in the short sale process, it can still be an arduous affair. There are three things buyers and sellers must possess when working through a short sale:
Yes, I said patience twice. Every short sale is different because every bank is different. And if there is a first and second lien holder, everything must be done twice. For each bank. However the bank requests it done. It’s also important to keep open and frequent communication with your agent and keep good records of your paperwork. The same paperwork may be requested multiple times. You might be amazed at how papers are “lost” at the short sale bank, or how many faxes “don’t go through” despite the confirmation page on your agent’s side.
As I mentioned, patience is key. It can be done. Like many things in life, short sales are difficult, but they can certainly be worth it.