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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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