Step #3 - Document, Fix, And Prepare
The number one mistake that is made when listing a short sale is the dreaded As-Is statement. The number one reason why short sales fall apart is because the buyer walks either when the bank takes too long, or they get nervous and feel as if they are making a mistake. A short sale is just like every other sale, it's just that the seller needs to get approval from the bank to short them. Buyers should expect the home to be just as nice as any other home for sale. A diligent agent will price the home according to it's condition and the time-line for which it goes to foreclosure. This would mean that homes that are priced below market value are there due to the work and repairs that need to be taken care of. In the even that the seller can not afford the repairs necessary, then there can be a negotiation involving the bank and the buyers for what will be taken care of. Selling the home As-Is is a safeguard for the seller...but you have to be willing to work with the buyers and make sure they make it to settlement. Unless it is related to the electrical, HVAC, or plumbing, you do not have to do anything. But you want to make the buyer feel comfortable buying your home and excited to get to closing.
Once you decide to contact an agent to help you with the sale of your home, you will need to document every bit of financial information you have. This is very important for the agent to qualify you for a short sale. The bank will not be too willing to accept your short sale if you have $80,000 in liquid assets, but in general retirement accounts are not counted and the banks are not able to access them. Remember, short sales are not just about people who received loans they could not afford. These are homeowners who sometimes have good jobs, but have to move. It is not always a situation where people can not pay their bills. It is very important that you take good notes and have all of your finances transparent for the bank to see.
When selecting your agent, the key is to choose someone with a detailed short sale packet. If they do not have one, find someone else. This is the key to agents success in this field. A detailed packet will give the bank everything they need to approve the sale of the home, and move your transaction to the top of the pile. Loss Mitigators see hundreds of packages a day...which do you think they will work on first, the one where they have to chase down information or the one that has everything already sitting there for them? The first document that you should sign is an Authorization Form. This allows your agent to speak to the bank on your behalf, removing you from having to make the daily phone calls and allowing you to get back to your life.
This is not a complicated process, but it does require organization and a system. Never give up, and make sure that you have all the information before you make your decision. There are people here to help...All you have to do is ask for it!
Jimmy Mulhern - CDPE
Http://www.AvoidForeclosureInVirginia.com
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