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With Minnesota’s 6-month Redemption Period for an occupied residential home, most lenders will be open to accepting a Short Sale in the time period from the Notice of Default to the end of the Redemption Period. After Redemption Period there is no chance for a Short Sale.
However, the Short Sale must be completed prior to the end of the 6-month Redemption Period. Now let’s take a look at the typical timeline for a Short Sale, either with 1-mortgage or 2-mortgages on the property.
| NO. OF DAYS AFTER MLS LISTING |
1-MORTGAGE |
2-MORTGAGES |
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| List Property on MLS |
0 |
0 |
| First Price Reduction on MLS |
15 |
15 |
| Second Price Reduction on MLS |
30 |
30 |
| Receive Short Sale Offer |
45 |
45 |
| Submit Short Sale Package to Lenders |
50 |
50 |
| Receive Approval Letters from Lenders |
100 |
120 |
| Complete Buyer's Home Inspection |
105 |
125 |
| Complete Buyer's Mortgage Appraisal |
120 |
140 |
| Receive Buyer's Mortgage Approval |
130 |
150 |
| Complete Short Sale Closing |
135 |
155 |
As you can see the time requirement for a Short Sale comes very close to the 180-day Redemption Period after the Sheriff’s Sale. So it is highly recommended that we list the home either before, or shortly after, the Sheriff’s Sale. Otherwise, we might not be able to close in time, thereby not being able to help you Avoid Deficiency Judgments with the secondary mortgage holders and/or Salvage your Credit Score.
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