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You Ask, We Answer: Understanding the Real Estate ‘Short Sale’ and How This Process Works

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You Ask, We Answer: Understanding the Real Estate 'Short Sale' and How This Process WorksA short sale is something that occurs when a homeowner is not able to make the mortgage payments on time due to a financial hardship. Instead of foreclosing on the property after one or more missed payments, the bank may agree to allow the homeowner to turn the home over to the bank, which will sell it to as close to market value as possible.

Here’s what you need to know about how short sales work and what circumstances might call for one.

Step 1: The Homeowner Provides Information To The Bank

The first step in the short sale process is for the homeowner to submit an information package to the bank. The homeowner will provide information such as the reason for the short sale, an authorization letter allowing the real estate agent to talk to the bank, and a financial statement. In addition, the seller may need to provide an HUD-1 statement as well as a list of comparable homes in the area.

Step 2: The Buyer Makes An Offer

Once the house is put on the market, a buyer can make an offer just as he or she would on any other home. The seller will then have the opportunity to accept any offer that he or she receives from a prospective buyer.

Step 3: The Bank Makes A Decision About The Offer

Once the seller accepts an offer to buy the home on short sale, the seller is responsible for sending information about the sale to the bank. Before the sale is finalized, the bank must approve the buyer’s offer. It could take as little as two weeks or as long as 120 days for the bank to approve the offer.

However, not all short sales are immediately approved. The seller’s bank bank might decline the buyer’s offer for one reason or another. A bank may decline a short sale offer if the bank negotiator thinks the house is worth more than the buyer’s offer or if the seller violates a clause in the short sale agreement – such as moving out of the property and violating a clause that states only owner-occupied properties are eligible for short sale.

Buying a home that is being sold as a short sale requires patience and an ability to move at the bank’s pace. Working closely with an experienced lender or mortgage broker may make it easier to get through the process without a lot of hassle or drama. 

How To Paint Your Home’s Exterior Walls

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Paint your home's exterior to improve its curb appealWhen preparing to sell a home, few things improve its curb appeal more than a fresh coat of exterior paint.  

Many people are intimidated by the thought of painting their home’s exterior, and choose to hire a third-party to handle the work. But, you can do it yourself, with these easy steps.

First, before starting, you’ll want to inspect your home. Examine all walls, look under the eaves, and pay attention to door frames and windows.  Be on the lookout for peeling paint, mildew and rough surfaces and make a note of them.

Next, gather the tools you’ll need to do the job. These include :

  • A power washer
  • A 2-3” inch putty knife
  • A 2-3” inch pull scraper
  • A wire brush
  • A sander
  • Chlorine bleach

Then, to create a clean surface on which to paint, power-wash the walls with plain water. Detergents are not needed, and may not work as well as plain water, anyway.

Follow-up your wash with the putty knife and wire brush to remove the remaining paint. Note where paint has peeled, blistered or wrinkled. Avoid gouging the surface by holding the putty knife perpendicular to the wall, and by using moderate force.

For areas that won’t easily clean, use your pull scraper. It’s used the same way as the putty knife, but it has a sharp blade attached that quickly works through old paint.

Next, sand your home’s exterior smooth using a piece of sandpaper wrapped around a sanding block. An electric sander may be more effective for large areas; it’ll save you time and energy.

If during the cleaning process, you find mildew, be sure to remove it. A simple mix of chlorine bleach will do the job. Mildew will show through the new coat(s) of paint, so be sure to be rid of it before beginning.

Lastly, with your home cleaned and primed for paint, wait for “good painting weather” and get started. Soon you’ll be ready to list your home for sale.

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