What You Need to Know About Stockton Short Sales
Ironically, Stockton short sales have always been one of the lengthier real estate transactions. The process of getting approval from both the seller and the lender can take longer than many buyers are willing to wait. But, the U.S. Treasury Department has been working to establish rules that will help keep the process moving along at a faster pace.
To date, there has a been a lack of standards in the Stockton short sales process allowing banks to take as much time as they want to respond to an offer. New rules will change that, but without additional staff to take on the new responsibilities many people are unsure that lenders will be able to stick to stricter guidelines.
Here are what some of the changes would look like under the new rules:
- Lenders would need to be provided with proof of a pre-approval letter or documentation of funds along with a submitted offer.
- Lenders would be unable to close before 45 days from the sales contract date, therefore providing the seller with enough time to move out of the house. This can be bypassed if the seller is willing to move out prior to the 45 day rule.
- The biggest advantage would be that the lenders would have to respond to the offer within ten business days of receiving it. This would help more buyers to make offers on Stockton short sales because they wouldn’t worry about waiting around to hear back from the bank for months on end.
- Short sales would not be able to be resold for 90 days. This isn’t a problem for those looking to live in the home most of the time, but it could discourage real estate investors that were looking for a house to flip.
- Foreclosure would be unable to take place during a specified amount of time to allow the short sale to be on the Stockton market.
These new rules do not do much to assist the seller except for provide them some time to move out of the house. However, Stockton buyers could take advantage of the changes. It allows them to have faster responses from the lender and keeps some would-be interested investors at bay.
Most real estate pros are happy to see these changes come about. There have been many instances when Stockton buyers who are interested in purchasing a short sale have had to walk away from the deal because it is taking so long for the lender to respond with either accepting or rejecting the loan. Or, the lender takes so long that by the time they do respond the buyer is no longer in a position to buy the house. The delayed response of the lender hurts both the buyer and the seller.
If these new rules can come into play and lenders are actually able to abide by them then it could be a game changer in the Stockton short sales process. While the rules are set, we have yet to see what the lasting difference will be because of them. If you are in need of selling your Stockton home via a short sale, we can help you. Contact us today to see how we can make you a cash offer on your home.