Your Responsibilities In A Short Sale...What You Need To Know About Short Sales.
Time and time again, we try to remind individuals that a Short Sale is a regular sale with the exception being that the seller also has a financing contingency. The key to a successful Short Sale is to give your situation the best opportunity to succeed. As a Short Sale agent, our responsibilities are to set your home sale up for approval by having a complete and proven Short Sale package. This is one of the most important things for you to examine when choosing an agent to represent you. Don't think it matters? Our most recent Short Sale received an approval in a WEEK! It is extremely important to have a detailed package as well as a marketing plan in place to help sell the bank that a Short Sale is the best option.
As a homeowner, you also have responsibilities that are very important to the success of your sale. During our first meeting, we will try and get every piece of paper that needs to be submitted to the bank - usually 2 months of bank statements, last two pay stubs, last years tax return, and last two months of all retirement and savings accounts. But along the way, the banks may throw a curve ball at us and ask for some other form to be filled out. This is where your responsiveness is critical to the time-line that the banks need.
Every conversation I have with the bank starts with them asking me if the homeowner is still in the property. There are two sets of people you will need to please in this transaction...the bank and the buyer. To best satisfy both parties, you need to keep the property in normal operating order.
This process can be simplified with a little bit of planning and patience. If you are considering a short sale, there are a couple things that you will want to keep in mind:
- Be Honest - disclose all liens on the property including tax liens.
- Be Flexible - Keep the buyers happy and if they need to stop by to see the home again...let them.
- Understand The Banks Position - Most 2nd Trusts will take 10% as a payoff...don't simply expect them to give up everything.
- Make Your Home Shine - We want the buyer to anticipate the closing the entire time we wait to hear from the bank.
- Be Diligent - Sign papers on time and get them back in ASAP. Each day late can delay the decision and increase the loss the bank will be deliberating on.
- Take Care Of The Property - Just cause it sells "As-Is" does not mean you should rip out the appliances or let the house fall apart.
Hire an agent who knows what they are doing, have an open mind to listen to the bank, and gather all your documents together to make the process streamlined. It is not a lot of work, but if you prepare up front, your success rate can be significantly increased.