Short Sale Questions

[Michael Gayer Jr]

Aloha Investors,

Can a home owner (in Pre-foreclosure) talk to his/her bank and get a Short Sale price from them, then sell it at that price?

Can the home owner sell at this Short Sale price to a Buyer on terms? Or does it have to be sold lump sum to cash bank out? 

Thank you in advance,

Mike

[Denise Evans]

Usually, you can get a short sale pre-approval price for an FHA insured home. The price will be 95% of the bank appraisal for offers in the first 30 days, 90% for offers in the next 30 days, and 85% for offers received more than 60 days after approval.

You can also get short sale pre-approval for some other types of loans. Call the servicing company and ask them if that option is available for your loan.

The sale has to be cash, unless your lender is a local or regional bank that still owns the loan in its own portfolio.