Home > Blogs > Prestige Real Estate Services > Prestige Real Estate's Blog

Short Sales Really DO Work!!

By Prestige Real Estate Services

Services for Real Estate Pros with Prestige Real Estate Services

January 08, 2009 04:08 AM

In my experience with many San Diego Agents and Homeowner's, many are skeptical if short sales even work. I don't blame them. There are a very small percentage of companies in San Diego that are successfully closing short sales. Fortunately, we are one of the companies that ARE doing them correctly and successfully!

I have addressed a brief description of why the banks really do want to Short Sale their properties instead of letting them go into foreclosure.

Why does the short sale process work?

Typically once a notice of default is assigned, the mortgage company will run different scenarios on your property to determine what they can get for a return on their investment. Your mortgage company takes the following 5 factors into consideration among many others:

1. The foreclosure process costs extra money.

2. They may have to make repairs on the property (especially in foreclosure situations)

3. They may have to pay realtors commissions up to 6% of the selling price of the house. Typically the homeowner would pay these fees but there is no equity left in the house or the homeowner does not have the funds.

4. There are holding costs associated with foreclosure.

5. They will have to carry property insurance on your property and all properties in their Real Estate Owned division.

These reasons will allow the bank to consider taking less that what is currently owed on a property. The lender will typically want their money now as opposed to getting the same amount of money six months from now.

Warm Regards,

Sara Ard
Prestige Real Estate Services
sara@prestige-res.com

619-365-9328

Re-Blog

Comments(5)

Comment

Show All Comments Sort:

Martin E. Kalisker, Esq.

Natick, MA

Real Estate Law From A Practical Perspective

What is it that your company does correctly? Why are you more successful with short sales than other firms in your market?

Jan 08, 2009 04:10 AM

Michael Wayne Jackson

Luxe Places International Realty - Novato, CA

Broker - Seniors Real Estate Specialist Novato

Nice breakdown of why short sales do work Sara. Now we just need all banks to be on board and understand time is of the essence.

Jan 08, 2009 04:15 AM

Barb Van Stensel

Chicago, IL

Sara, they do work and you make it sound so very easy. #3 commission isn't paid by the bank but by the buyer. The bank has a net and the buyer pays all the closing costs associated on the banks side as well as the buyer's side.

An exterior BPO is done by a real estate agent or appraiser for a "summation" of value. That is one of the ways the bank figures out what they will accept for net selling price.

If the real estate agent is not familiar with that particular neighborhood, then the pricing can be off and the selling price drags on and on until it hits an area of foreclosure. I do not like foreclosures as they are handled in a way that the property isn't secured as well and damage is done to the property and that is where it really brings or as I call it "drags down" the value of the median price for the neighborhood.

Successful, yes they can be successful if the Real Estate Agent knows how to talk to the bank and is a good communicator and closer and understands and qualifies the buyers for the loans for that particular porperty so that the sale doesn't fall out.

Good post to let others know the banks mindset.

Jan 08, 2009 04:38 AM

Debbie Walsh

SHAHAR Management - Middletown, NY

Hudson Valley NY Real Estate 845.283-3036

I am very leery of short sales but I am involved in one now from the buyer's side and it seems to be going very well. I heard yesterday that we should be closing in about a month so my fingers are crossed that all goes well and I get my paycheck!

Jan 08, 2009 05:42 AM

Prestige Real Estate Services

Prestige Real Estate Services - San Diego, CA

Thank you to everyone who enjoyed the post.

@ Martin Kalisker - We are a short sale negotiation company that works directly with both homeowners and Agents. I believe we have a niche in the market that makes us extremely successful.

1. Legal: Even though the market changes by the day, we have put an extreme amount of upfront work with the legal aspect of the entire short sale transaction. We are not in the business to tread in treacherous waters and want to make sure that we represent ourselves, the homeowner, Agent, Lender, buyers...everyone in the transaction with the most fiduciary responsibility.

2: System: Our system is extremely streamlined from initial documentation to closings. Our systems allow Realtors to submit short sales with the utmost ease, while homeowners can understand the complex process within a simple conversation.

3. Technology: We have an all automated online system that allows the homeowner and Agents to login and check the status of their short sale during the entire process.

4. Exit Strategies: We bring more than the one way of marketing the property (MLS) We have a database of buyers looking to purchase within the market. But MOST IMPORTANTLY we have the ability to close on the transaction as an investor.

5. We realize the highest and best use for every short sale is NOT always to negotiate the deal while listing it at the same time. There are two parts of the transaction. 1. Negotiating to obtain and approval and 2. Getting the property sold! We allow Agents to do what they do best...Sell Real Estate.

5. A team that just wont take NO for answer! We are just passionate .....and VERY Good in what we do!

I could go on and on. But I have had an extremely LONG day and this was the last thing on my task list to get done before the weekend. I apologize for the delay in getting back to your questions.

Have a great weekend! Anyone, feel free to contact me if you would like to learn more about our services and /or have any questions on what we do!

Sara Ard

Jan 09, 2009 04:01 PM

Short Sales Really DO Work!!

Comments(5)

Prestige Real Estate Services

Real Estate Resources

Recent Posts