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Short sale 101: How does it work?

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  • Description

    Real estate guru Bob Massi explains

  • Duration 3:09
  • Date

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-- more people turning to short sales of -- homes quickly it's important understand how they work and what players are involved Fox News legal analyst Bob -- is here to Phyllis and hey Bob.

Just quickly tell us what why what what prompts someone to a short sale.

Well because they they don't want to have a foreclosure to -- their credit is bad so short sellers are designed.

To sell the home for less than what it's worth but there is a process and I -- our -- to understand.

Inch infrastructure wise -- exactly how this whole thing works.

It's one homeowner decides to list the house for a short sale.

How is it actually what's whole process who gets involved -- well to do good.

Right so let's say you make it off from my home America that offer is sent into the lender.

Immediately lets assume there's a first and second on the home immediately each lender independently of one another.

-- point what's called a negotiator that negotiator is they -- specifically.

To review your finances they will send -- side air -- want to see what your monthly expenses are what your liabilities are they wanna see tax returns.

If your -- business for yourself that wanna -- profit loss statements if you're not they wanna see your W twos and your pay -- Those negotiators.

Air are the players.

That are involved with the realtors negotiator.

Try to haltingly reached decision if you're gonna be able -- have a short sell accept that and you have to show financial hardship.

-- -- -- -- -- -- While basically everybody has that the lenders are paying for the negotiators.

And their -- -- it goes you think it's paid a fee on the back and and what they do is what's calling DP -- its quota broker's price opinion.

Each of the lenders will put a value on the home.

Use -- the first lender -- will send somebody and and take pictures of the home it's like an appraisal but they caught a BP -- it costs a few hundred bucks the lender pace Ford.

But it gives them a range of what the value was of that home.

In the area where the home is located and that's a very important part of this whole process of -- -- all right and we you talked about the second mortgage but.

Can it play a role if you can it stop the process.

Major role major role because a lot of times here's what happens.

That second mortgage knows her like a creditor of their unsecured.

It's under water air so the first negotiator will say look.

Were not -- even consider mass he's offer at all.

Unless we know that second mortgage is going to be willing.

To be bought down for a lesser figure than what's -- because they figure why spend all the time.

Going through this process at the seconds that'll hold it up because seconds could say.

-- -- those 50000 dollars.

We want 25000.

-- we want 151000.

A lot of times in order to get a short so -- there aren't.

That the seller wants to be they want someone -- you're going to want to get it done this selling wanna get it done and what it -- -- yeah it might -- thank you how much are you getting up really early for us in Vegas.

All my -- guys that you can email Bob -- your questions at FOX & Friends dot com.

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