Selling a home successfully requires experience, time and resources.

Selling a short sale requires specific knowledge and strategic marketing.

With the declining real estate market, many people have found themselves "upside down" in their home, meaning they owe more than it can be sold for in today's market.

A short sale occurs when a lender agrees to take less than the full loan payoff for an owner’s property. In most cases (but not always) the owner is in default and is not making their payments for whatever reason. Short sales, in most circumstances, are the first step to avoid foreclosure.

If there is no way to make the payments now or in the future, your lender will not agree to a forbearance or rate modification, and your only other option is foreclosure, then a short sale may be right for you.

We have also recently experienced what we call "market shorts", meaning that the market has gone down below what you owe and it will take years, if even ever, for the value to be on par with what you owe.  These situations are more challenging, but you can break free and move on.  Maybe not unscathed, but at least you can move on.  Sometimes peace of mind and reduced stress is more valuable.

If you are in a short sale situation, don't feel alone or trapped. You do have options. However, short sales are very complicated and should only be handled by an experienced professional.

Keep in mind that the bank (lender) is not obligated to take a short sale and in most cases the process to get one approved is cumbersome and frustrating and can take months. Each bank evaluates each individual request on a case by case basis. That’s why having an experienced agent to negotiate on your behalf is critical to a successful approval.

If you are in a difficult situation and are considering a short sale, let me guide you through the process. I have experience in negotiating short sales and can help you! Don't worry about paying Realtor fees and closing costs out of pocket, those fees are factored into the shortage.

Always consult with your CPA and Attorney on how this will affect your personal financial situation. Each situation is unique and should be evaluated on a case by case basis. 

Please fell free to call me to sit down with you and discuss your unique situation.  All consultations are private and confidential and with no obligation. 

How I Manage The Short Sale Process

  • Review your financial situation and work with you to prepare a preliminary submission package.
  • Get written approval from you to communicate with your lender on your behalf.
  • Contact your lenders on your behalf to start the short sale process, upload, email and/or fax required documentation.  Each lender's process is different. 
  • Provide you with resources for determining your financial and tax liability and impact to your credit.
  • Provide you with reputable and knowledgeable service providers such as CPA and Attorney.
  • Strategically price and market your home to get a reasonable offer to present to the bank.  The lender will not consider a short sale without an offfer!
  • Once an offer is received, submit complete and thorough package to lender. This is KEY.  Incomplete, missing or plain sloppy work will be rejected and your file will be sent to the "back of the line".
  • Follow up daily with the lender to get assigned to a negotiator.
  • Once assigned to a negotiator, successfully manage process to ensure accurate BPO & file review.  Respond to lender requests immediately!
  • Obtain short sale approval letter with best possible terms and conditions looking out for your best interest. 
  • Clearly explain all terms and conditions to you before you agree to proceed.
  • If the Buyer backs out along the way, quickly replace with a back up offer to streamline the process and not lose momentum.
  • Constant communication with you and the Buyer's Agent or Buyer to guide you through the process.

For more information about Saving Your Home From Foreclosure, Call 1-800-882-6290 Extension 3005

 

Links to More Info

Tax Implications

IRS - The Mortgage Forgiveness Debt Relief Act and Debt Cancellation  - Note: MFDRA Expires 2012 

 

If you are considering buying a Short Sale, Foreclosure or HUD property, give us a call and we can help educate you on how to buy a home and avoid common pitfalls.  As you can see from above, managing a short sale listing takes experience and skill.  If the listing Agent is not experienced, your offer may never happen.  We know how to work with other agents to respectfully and effeciently get the job done.