I want to short sale my home, where do I start?

By
Real Estate Agent with Keller Williams Realty

Chula Vista Short Sale: I need help, "How do I start a short sale?" Many people call my office with this question but short sales are not as scary as most people think and with the right agent short sales can be as smooth as a regular sale.

Many people have told harrowing stories about short sales all across the USA but in actual fact we are beginning to see progress with some banks. Wachovia has a great program up and running in California for Wachovia and World Savings borrowers. Bank of America will be rolling out a similar program later this year.

If your loan modification has come to a stand still or you have been told you have a slim chance of qualifying then a NO COST short sale may be the answer. Let me try to explain in basic terms how the process works.

1. Your first step will be to give me a call in Chula Vista 619 743 8884 or a realtor that you have been referred to or you know that has done a Stella job in the past.

2. The Realtor will then set an appointment at your home and ask you to have the following copied documents available at your appointment.

NOTE: The realtor may request that you email, fax or mail them prior to your appointment.

a) Your mortgage statements

b) Your most recent bank statements

c) A hardship letter stating what financial circumstances have changed since you took out the original loan. This could be job loss, reduced income, illness, divorce, separation, re-location etc. There will be other documents required on a bank to bank basis

d) At the appointment the realtor will ask you as the home owner to sign a listing agreement take a look around the property and may also take pictures.

e) The house should be on the market in 24 hours

f) All you have to do now is make the home ready for showing and selling. To sell the home be as flexible as possible on time to show your home.

g) As soon as your realtor receives a good offer that meets the current market value he will call you to go over the contract and ask you to sign an acceptance of the offer. As you are still the legal owner the bank has to see a legal contract signed by you and the buyer.

h) Your realtor will then send the offer to your lender. He would have already opened the lines of communication with your bank and a full short sale package would have been submitted.

i) Now you have to wait. Depending on your lender a short sale 60 days to 9 months in some cases longer.

j) If the bank accepts your buyers offer then the bank will issue a "Short sale approval letter"

All being well your buyer is still around and you can go into escrow and close the deal.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Our Chula Vista loan modification kit has the instructions you will need to get a loan modification approved.

Thanks for reading this, Mike Watson.

Mike is a real estate agent at Keller Williams.

Phone: (619) 743-8884. or email mikekwcv@gmail.com.

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Devona Garrigus 11/28/2010 03:52 PM
  2. Chuck Carstensen 11/29/2010 12:03 AM
Location:
California San Diego County Chula Vista Eastlake Greens
Tags:
chula vista short sale guidelines
short sales in chula vista ca

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Rainmaker
343,736
Don Wixom
RE/MAX Advantage Nampa, ID - Nampa, ID
"Looking out for your next move..."tm

Mike, this is a great list to help sellers prepare for their short sale! Educating them along the way and staying in good contact makes it go much more smoothly! Great job!

Nov 28, 2010 04:00 PM #3
Ambassador
2,005,321
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Mike - This is a great explanation of what a seller has to do to short sale their home.

Nov 28, 2010 05:56 PM #4
Rainmaker
717,278
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Nice succint list. Easy to follow and takes the complexity and makes it simple to follow. Nice job, Mike.

Nov 28, 2010 10:40 PM #5
Ambassador
1,924,817
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

There is a step to take before STEP E

If a modification fails because the lender determined so. . .the homeowners more likely qualify for the  HAFA PROGRAM. They should attempt this before putting the home in the market as a conventional short sale.

Nov 28, 2010 10:45 PM #6
Rainer
26,996
Leah Henderson
Asset Realty, Inc - Columbia, SC
Hi Mike, that step by step review was very helpful. Thank you, Leah
Nov 28, 2010 10:58 PM #7
Rainer
139,891
Ben Benita
Ben Benita - Gainesville, VA
Speaker, Author, Game Changer, Coach

For you agents out there -- NOTHING MOE IMPROTANT ON A SHOT SALE THAN SETTING REASONABLE EXPECTATIONS FOR YOUR SELLERS (and Buyers).

 

Nov 28, 2010 11:24 PM #8
Rainer
35,769
Thomas Tom Carpenter
VanDyk Mortgage Corporation - Grand Rapids, MI

Mike

Nice article,

How many of your listing by percent are Short Sales in the current market?, I know CA only rates ahead of us here in Michigan and kinda on a tie with Florida, and we going to take the leader, The Great State of Las Vegas, NV out of the numbers.

Nov 28, 2010 11:41 PM #9
Rainmaker
973,363
Corinne Guest
Barrington Realty Company - Barrington, IL
Barrington Lifestyles

Slowly we are getting the word out about how short sales are not as bad as owners think. Depending on your area it can be tough to find a buyer but all you need is one.

Nov 29, 2010 01:02 AM #10
Rainer
41,720
James McGary
Agents Set Free, Inc - Irvine, CA

Great information for Short Sales candidates.  I think it is informative for both sellers and buyers

 

Nov 29, 2010 01:37 AM #11
Ambassador
778,053
Doug Rogers
Bayou Properties - Alexandria, LA
Your Alexandria Louisiana Agent

In our MLS we have to disclose if the home is a short sell, yet many listing agents "forget" this step. Nothing like submitting an offer only to hear 2-3 days later "we are just waiting on bank approval"!

Nov 29, 2010 01:50 AM #12
Rainmaker
2,135,403
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

Fernando #6 is correct. It used to be you could convert that short sale listing to HAFA if it qualified but now HAFA is running interference. If the sellers qualify for HAFA, you may need to enroll them in the HAFA program prior to putting that home on the market because I'm finding that HAFA won't accept sellers who listed the home first.

Nov 29, 2010 02:29 AM #13
Rainmaker
647,440
Team Honeycutt
Allen Tate - Concord, NC

This makes it very clear but I have yet to work a short sale that was easy or even reasonable.

Nov 29, 2010 03:13 AM #14
Rainer
29,396
Jeff Spoelstra
Better Homes and Gardens Real Estate - San Jose, CA

Having worked many short sales, I can agree that, for the most part, lenders are finally getting their act together.  It's still not a slam-dunk to get a short sale approved.  I lost two last week to trustee sale because the lender wouldn't cooperate with the offers we had on the properties.  But, that is contrasted by the many more deals that have closed successfully and the sellers avoided a foreclosure hit on their credit report.  It's all about helping the homeowner as best we can.  If you're an agent and don't want to deal with listing a short sale yourself, don't turn it down.  Refer it out to a CDPE-trained agent in your agrea and at least collect a referral fee.

Nov 29, 2010 04:48 AM #15
Rainer
16,642
Luke Cox
EXIT Realty, Your Next Move - Portland, OR

Very nice overview!

Nov 29, 2010 05:20 AM #16
Rainer
122,829
Cory Barbee
San Diego, CA
Broker (760) 563-4022

Great post Mike, looking forward to seeing the growth and profitability of your office. Have a great 2011!

Nov 29, 2010 08:36 AM #17
Rainmaker
97,214
Joshua Harley
Fathom Realty - Plano, TX
CEO, Tech Geek, Innovator, Disruptor, US Marine

Mike this is a great list for sellers.  You are right that every state has different laws for Short Sales, and it seems that Congress has done little to make the process "similar" from one institution (like Bank of America) to the next (like World Savings, Wachovia, Wells Fargo).  That's why it's so important for sellers to work with an agent who is educated in the process like you are!  Congratulations!

Nov 29, 2010 08:44 AM #18
Anonymous
Ward Adams

I just read a dozen or so responses and I am feeling like I live in a different universe. Short selling is a joke, at least in Arizona. The lenders and asset managers are doing everything they can to kill deals. The asset managers are telling listing agents to low ball the listing price to attract a number of offers and then they are doing a bait and switch. Oh, and they are not disclosing that little trick to potential buyers and in some cases even after being directly asked the listing agents are not admitting the strategy to other agents. It is also my understanding that the lenders now prefer foreclosure to short sales because they make more money on a foreclosure. In theory and in class the short sale seems logical. In the real world it is a nightmare for the seller and the buyer. "Walk away" foreclosures will soon become the norm. Yes, the agent has to be knowledgeable and be willing to work directly with the buyer and seller and not pass off the hand holding to a "team" of clericals.

Nov 29, 2010 09:21 AM #19
Rainmaker
583,298
John Marshall - FORE!
The K Company Realty - Cherry Hills Village, CO
Specializing in Golf Course Properties

Mike, good stuff, if I might add the sooner a seller speaks with an agent, the more likely they will be able to get to closing.

Nov 29, 2010 09:37 AM #20
Rainer
35,317
Nima Mohmmadi
Keller Williams Realty-Team Caropreso - Odenton, MD
Realtor in Odenton, Crofton, Severna Park, Millersville, Severn, MD

Great stuff, thanks.

Nov 29, 2010 10:36 AM #21
Rainmaker
2,367,949
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Take a valium, fasten your seat belt.....all optional but........you never know

Nov 29, 2010 12:18 PM #22
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