Short sales success tips

By
Real Estate Agent with Keller Williams Realty
WHAT ABOUT SHORT SALES? For those who do not know what a 'Short Sale' is, but think you want to do one, now is a great time to learn. The number of Short Sales in the adjusting/declining market has increased dramatically this year but is it the best thing for all concerned? In short, a Short Sale is when the Bank holding the mortgage on a property, negotiates with a Buyer and sells the home for less than the amount owed. Obviously, the Seller gets nothing as he/she owes more than the property will net when sold in the open market in a reasonable marketing time. The property is sold short of or less than the mortgage debt due, hence the name Short Sale. Buyers aside, is there a better way to handle the monthly debt obligations of the borrower (seller) so that a short sale is not needed? Buyers? How likely are you to find a Short Sale and successfully negotiate a deal? Your chances are 50/50 in getting one of these to happen. No Bank wants to lose money, so they would rather work it out before the home goes to the REO Department at the Bank but you've got to be talking to the right person or better yet, have another qualified professional talk to the 'bank.' Credit repair savvy mortgage professionals, seasoned, specialists in real estate negotiation- many times they're happy to help and know if/when successful, they've earned a client for life. TIPS FOR BUYERS AND SELLERS REGARDING SHORT SALES (if short sales is the best option available) (Request a 'Short Sales Package' from the bank as soon as the mortgage is 90 days late) This request will include: A required Financial worksheet, Proof of Income reported, (2 recent pay stubs from all mortgagors- all named on the mortgage debt) A letter explaining the hardship A copy of your most recent tax return (1040 Form, only the first 2 pages) Seller's Listing Agreement. Signed Purchase Agreement, or Sales Contract. Sellers Net Sheet Buyers Pre-Qualification Letter from the lender, or if a cash buy, proof of funds from Banking institute. Put the Mortgage Loan number on every page. Send the whole package Fed Ex, and keep the tracking number. SELLERS: If you've exhausted loan re-writes, and you're 90-120 days in arrears and you do not have a Buyer yet, get a Realtor to list your house who knows how to do Short Sales, and have them help you with the hardship letter, and getting the package to the right person. (PS Call us) Try and do the package with a 24 hour turn-a-round. Call the contact you now have at the Bank on a weekly basis. If you're not getting results, responses, and genuine efforts towards a resolution, try someone else or have someone else try for you. BE PATIENT. Stay rational. TRY SOMETHING ELSE. SEARCH FOR SOMEONE WHO CARES TO FIND SOMEONE ELSE WHO DOES Allow 2 months, so a good Buyer would be an Investor who is not working to a ridged time line. BUYERS: If you are a Buyer trying to buy a Short Sale, the Bank is more likely to work with a Realtor or Financial advisor or workout specialist, than the Buyer directly. The Bank likes to see the comps, and to be sent quotes to fix up the house, to have a properly prepared and marketed home, and a Seller and Buyer that want to make it work. For more, call us. Remember you have a 50/50 chance of success. Don't put your energy and time in shortsales unless/until you've exhausted every other option.

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