If you are facing foreclosure please read this very carefully. A Idaho short sale is a legally-binding agreement that allows the home to be sold for less than the remaining balance of the loan.  A lot of home owners are asking questions about short sales, foreclosures, pre-foreclosures, REO's and repos. Even though there are a lot more foreclosures in the other states we  still have big problems here in Idaho. Lenders may be more open to accepting the terms of a short sale in this market, more than before, to avoid the much more costly foreclosure process. Please consider the following.

The Sellers and Idaho Real Estate Agent need to have an extensive truthful meeting about the Sellers financial status. If the sellers are having financial problems, they may not want to discuss the details of their financial situation, but being up front and honest, and disclosing everything is essential in the closing of a short sale transaction.

Then the sellers should contact the Lender to find out whether the Lender is willing to consider a Idaho short sale arrangement. Convincing a Lender to reduce the balance of the loan to close the transaction is often challenging, this is where the negotiating skills of a seasoned Idaho agent is imperative. Remember the additional work that short sales require of both the Seller and the Idaho agent.

The Escrow Officer will need to prepare a "net sheet" as soon as possible and update it often as possible. This is a detailed statement of the payoffs and closing costs that will be charged to the seller at close of escrow.

Find out the value of your property. Your Idaho real estate will provide you with an estimated market analysis.

 For the lender:

Copy of the Purchase Agreement

Financial hardship letter for the Lender

Pay stubs and proof of all income.

2 years income Tax

Returns Current tax bill

Personal checking account statement

All past due secured and unsecured debts

Latest mortgage statement

Current appraisal and comparable sales in the area

For the Title Company:

The conditions of the short sale closing must be set out in both the Purchase Agreement and Escrow Instructions. The Lender's payoff demand is received in escrow and includes restrictions on closing costs and the payoff amounts to all lenders and creditors. The Sellers and real estate agent should be proactive about the numbers that the lender will see. Include every possible expense in the sellers"net sheet", and pay close attention to the "bottom line" as the process unfolds. Your Escrow Officer should advise you immediately of any changes or discrepancies. The Lender will provide a minimum payoff figure which it is prepared to accept, and its willingness to continue negotiating.

Your Escrow Officer will report all the numbers and complying with the short sale Lender's requirements. Work with your Escrow Officer to generate the "net sheets" for the Lender, the Escrow Officer will anticipate the requirements to monitor and close these unique transactions.

So if you are facing a possible foreclosure situation please contact me and I will work hard for you negotiating a possible short sale with your lender.

Mervin Hanover
RE/MAX Advantage
5680 E. Franklin Rd. Ste. 100
Nampa Id. 83687
Mobile: (208) 412-8630
Fax: (208) 466-7770
email: mervin@movinidaho.com
Website: www.movinidaho.com

If you have a Real Estate need, I would appreciate having the opportunity to serve you. I will meet and exceed your every expectation. Would you like to know the value of a property you own, or would like to own? If so, call me for a free, no obligation professional home evaluation.