The phrase that strikes fear in many realtor's hearts is the detail on the MLS sheet "Short Sale". In the Waukesha County Real Estate Market we at the Stas Team deal with Short Sales every day. I have worked on all sides of Short sales. Buyer, seller, HAFA, COOP, big bank, small bank, early and late. No matter how the buyer finds a short sale there is one consistent theme--Please be patient.
Short sale is a real alternative for families who have fallen behind in their ability to pay for their home. Whether the distress is caused by job loss, divorce, overwhelming debt or health problems, Short sales can save a family from a judgment of foreclosure that will follow them for years and years. It also allows the homeowner to walk away from their debt and start a fresh without burdensome realty costs, closing costs and repairs.
Take some advice from Michael Smith. The price for the benefit is patience and diligence. Sellers have to establish their financial hardship--they do this by providing an exhaustive profile of documentation. Buyers have to offer a reasonable (for this Market) price for the purchase. Agents have to follow strict processes to assure the investors and banks will play ball. All involved have to remember that 1-3 homes on the market are distressed. As such the lenders are in no rush to deal with my short sale. 3 tips for success are
1. Present a complete picture--Document the need, the value, and the offer to minimize confusion.
2. Be tenacious as you market and present deals. You are the only one that thinks your deal is critical--Your a salesman--sell the bank!
3. Under promise and over deliver--Less than half of short sale offers get to closing--don't make your sellers think it is easy or your buyers think it will be quick. Give both a clear picture of what to expect.
There is no quick fixes with short sales, but they can when done well give buyers and sellers a shot in the arm!