Thinking about a Short Sale?
"Short Sale" seems to be the talk of the town these days. With many homeowners in unfortunate situations at the present time they are searching for alternative ways out.
Some may have read about a short sale online or in the newspaper. But most homeowners don't have all of the information about a short sale to make an informed decision. Below I will address the top concerns & questions I'm hearing from homeowners & my advice to them.
- Do I qualify for a Short Sale?
- To answer this take a look at your financials. Are you unable to continue on your current path? Are you paying more out each month than you are bringing in? Have you borrowed money from credit cards, family, other property, etc to continue to pay your mortgage? If you have & do not have the means to borrow more you are probably a candidate. If you have not missed any payments yet we cannot get a short sale approved. Why? Because if you are still able to make your payments, the bank has no reason to accept a short sale.
Will my lender approve a Short Sale?
- Again, take a look at your financials. Make sure you are in a true hardship situation.
- Most lenders are looking at short sale packages for review. In recent months I have NOT ran into a lender that will not even consider one.
- Should I contact an investor or a real estate professional?
- Without a doubt, contact a licensed real estate professional with experience in short sales. Find out if they've closed any short sales. Ask them about how many ended up in foreclosure. Ask them if they have a plan in place to expedite the process. Ask for references.
- An investor is looking to make a huge profit on your house. If there is not enough profit available for him/her they will walk away from the deal leaving you in a situation that will most likely lead to Foreclosure. Also, many lenders are not allowing any simultaneous closings/transfer of ownership, etc. That means that they have to close on your property. Now if the investor is truly looking to purchase your home it may be an ok deal. You should still consult with a licensed real estate agent or real estate attorney for advice.
- Is a "Short Sale" a short or quick process?
- I get this question a lot. The answer is NO. Upon submitting an offer & short sale package to the lender it can still take 30-60 days for an answer. Priced correctly, we should receive an offer within 30-60 days of taking the listing.
- How will you advertise a short sale?
- This is critical to find out from a real estate agent. We've seen some not give the listing the normal marketing attention as non-short sale listings. At The-Extreme-Team.com we utilize over 40 websites including MLS to promote your home. We also provide signage & a lockbox for showings.
- Can you guarantee the sale?
- Unfortunately we cannot. We can guarantee that we will do everything possible to sell your house. Under these conditions though & with so many outside factors weighing in, we cannot guarantee your house will sell. Ultimately, you could end up in Foreclosure.
- What is the cost associated with a Short Sale to the seller?
- Make sure you ask this question right away before making any decisions. Some companies & real estate agencies are charging upfront fees for their services. While I understand why they do this, as negotiating short sales is VERY time consuming, I do not find it ethical. We do NOT charge any upfront fees. When we are successful in selling your house the commissions are paid by the approving lender. There are no other fees billed to you. If, however, you simply change your mind or fail to cooperate with after the process has begun, we will charge you a nominal cancellation fee.
- What documents will I need to provide to begin?
- First, we'll need a document called an "Authorization to Release". This grants us permission to speak directly with your lender. Next, we'll complete a Listing Agreement. Finally, we'll need a hardship letter, financial statement, last 2 month's bank statements, last 2 pay check stubs & last 2 years' tax returns. Sometimes the banks have other requirements but these documents will suffice to get us started. We'll let you know ASAP if we need additional documentation for your file.
- What is your contact information?
- You can contact us via our website: http://www.the-extreme-team.com/ 24 hours a day. We are licensed real estate sales associates in the state of Florida. We cover the entire Lee County area & parts of Charlotte & Collier counties as well. We also have contacts for others across the United States should your property be located elsewhere. We advise all of our customers to contact both an experienced accountant & experienced attorney. There could be tax & legal consequences to a short sale depending upon your situation. We cannot & do not offer legal or accounting advice.
If you have a question not answered here feel free to contact us at anytime & we'll be glad to discuss your particular situation in more detail.
We look forward to hearing from you & working together.
Yours in Success,
Susan Milner, REALTOR®