One of the newest terms in Real Estate is the "Short Sale". If you have seen recent mls listings or ads, then you have seen subject to lenders approval or subject to third party approval. Well, that is a short sale. A Short Sale results when the homeowner sells their property, the net proceeds from the sale are insufficient to payoff the mortgage balance, yet the mortgage company agrees to accept less than the mortgage payoff amount in order to close the sale. All Short Sales are subject to mortgage company approval and require an extensive amount of work to reach a successful outcome.
On this page we will try to outline the process for you. We ask that you contact us with any questions and how we can help you through the process.
Real Estate agents are not all the same. The public often has difficulty distinuishing between different agents.
NOT EVERY AGENT IS EXPERIENCED IN SHORT SALES....
We are among the best and most experienced Realtors here in New Hampshire. It makes it very easy for buyers and sellers to choose us to assist them with all of their Real Estate needs. Call us to assist you with your needs.
FULL SERVICE ASSISTANCE
know what documents are needed to gain lender approve of a short sale,
assemble the documents in a lender short sale submission package that will result in a lender being able to evaluate and approve a short sale transaction,
present the lender short sale submission package to the lender in a manner that will be effective,
have techniques that will enable the licensee to assist an appraiser or BPO broker to arrive at a realistic value opinion on a short sale property, and
understand and be able to alert the borrower to the consequences of mortgage fraud before the borrower takes actions in a short sale that are irreversible.
The seller and agent should consider the presentation that is made to the lender as the beginning of and an integral part of the negotiation process that leads to a sale. Most lenders will be reluctant to approve a request to consider a short sale based on incomplete or ambiguous information.
Properties are Upside Down
When selling a property the value of a property minus the costs of selling the property falls below what the homeowner owes the bank, the property is said to be “short”. If the homeowner wishes to sell, but does not have the cash to cover this shortage at closing, then the property could still close providing the bank, mortgage company, or companies, are willing to negotiate a “Short Sale”.
Short sale scenarios have become quite common today, but successful negotiations to close them have not. Not every Realtor can decide they want to sell short sales and be successful with it. One really needs a Realtor who is educated in short sales, experienced with short sales and have csuccessfully completed them. They require extensive up-front preparation with the seller, Loads of paperwork, detailed analysis, diligent follow-up and effective negotiation. When successful, the rewards can be huge – to the seller, the buyer and the lender!
We CAN assist you with your negotiation of a short sale!!!
Am I Qualified for a Short Sale?
“Am I Qualified for a Short Sale”? To be qualified, it means that the seller's property and personal financial situation will likely meet the requirements to receive financial assistance from their mortgage company in order to complete a short sale on their property. To a buyer, it means that if they were to purchase a property such as this, there exists a high probability that they will actually be able to close on it!
Over half the homes sold in our local market today are either a home that has been foreclosed on, is being sold short or has a mortgage on it that is in arrears. If you are facing a financial challenge with respect to your home and mortgage, please understand that you are not alone. There are options and there are solutions. Time is very important. If you are soon to be behind, are behind or have received a foreclosure notice, we can try and help you, however you need to take the step right now to contact us to determine if I can help you.
The ultimate goal in a short sale is to complete successful closing. This begins with an accurate assessment of the seller’s circumstances to determine whether a short sale is probable; and if it is, the property can then be placed on the market for sale.
The property should be listed at fair market value and adjusted as needed in order to attract an offer. Once the buyer is found and an offer successfully negotiated with the seller, the purchase agreement is forwarded to the lender along with a substantial amount of financial documentation that supports the seller’s hardship, as well as market data that supports the sales price of the property.
It is the Realtor’s job to present the detailed documentation to the lender, point out the advantages to the lender of accepting the short sale and facilitate additional negotiations on price and terms among the various parties until an agreement is reached. Effectively and accurately completing this process is absolutely critical. If any of these requirements are not met, or are incomplete, the file is generally not processed or is denied. Oftentimes a seller has more than one mortgage against the property. When this is the case, the negotiations, complexity and required documentation increases almost exponentially.
Not only does the lender(s) need to be persuaded to accept the short sale, but so does the investor(s) that invested in the mortgage note(s). A great real estate agent familiar with only sales and marketing, but not the complexity of a short sale transaction, is not likely to close a short sale on behalf of a homeowner seeking mortgage relief and avoidance of foreclosure.
In addition to the negotiations with the lender(s) and investor(s), skill and effective communication is required by the Realtor to keep the transaction together during the time it takes to complete these negotiations, as buyers get frustrated waiting for the lender(s) and/or investor(s) to provide a response to their offer on the property.
THINKING OF BUYING A SHORT SALE?
As a buyer thinking of buying a short sale there is information you MUSt know before you even begin your search. First, you really need a buyer broker who is experienced with short sales, not every agent is. Short sales are not for everyone.... They will only go as good as the agent or negotiator for that short sale is. When everything goes well a short sale can take 2-3 months from start to finish. Whne things are not going well, it can take 3-6 months and beyond.
The difference between going well and going bad is again the expereince of the listing agent to be able to work with, negotiate and communicate with the bank, the seller and the buyer. The key for a buyer is to find a short sale that has already been approved and at very leased in process of being approved.
If you are thinking of buying a short sale please contact me for how i can assist you. You can get an incredible deal with a short sale... you dont need to put your hopes and dreams of a new home on a wish and a prayer or a flip of the coin, get the advantage by having an experienced Realtor represent you.