A day doesn't go by that I don't see a media report, hear a radio clip or read an Internet story regarding foreclosures and short sales. So far, in Laclede, Webster, Wright and Dallas County in Missouri (four main counties that I serve), foreclosure properties, bank owned homes and short sales are not driving our market. Real estate agents, Sellers and Buyers in the area know that could change any day.
Needless to say, I hope our market does not see the day when we are listing and selling more foreclosures and short sales than we are traditional transactions. But that doesn't relieve me of my concern: there is a ton of mis-information floating around out there.
Today I received a call from a homeowner in the area. We had helped him and his family relocate to Missouri from a warm weather state. Our winter has been pretty mild, but yesterday we had our first real accumulation of the winter season. Spoiler here: Missouri does have four seasons - I love that about Missouri, but not everyone does. (I have no idea if the weather prompted this call but I am *assuming* it did.)
So... This homeowner has decided he should sell his home "as a short sale" or maybe he'll even "let it go back." The family has plans to move back to their warm weather state.
I suggested we meet (when the weather breaks) later in the week to discuss his options. He said he'd call but I'll bet a crinkled dollar bill - I won't hear from him again. He'll call another agent in the area.
But, Deb, why won't he call you back?
Easy. He doesn't want to hear what I have to say. I truly believe the media leads people to believe a short sale can take place on a whim.
But... 
There are guidelines in place for short sales.
There, I said it!
Based on the guidelines, here are Five things to consider when trying to decide if a short sale is right for you and for your family:
1. Lenders are NOT required to negotiate a short sale. If you read your mortgage papers you'll see verbiage to this effect. Listing your home the traditional way may be your only option.
If the lender is willing to discuss a short sale:
2. The Lender will want to determine the fair market value of your home.
a. They will want to order a Broker Price Opinion or an Appraisal.
b. They may want the Seller to contribute to the cost of the BPO or the Appraisal
3. The property/home will need to be worth LESS than what the market will support. A Seller cannot make a profit on a short sale!
4. The Seller will probably be required to write a letter of hardship.
a. Hardship includes divorce, medical conditions, unemployment, death
b. Hardship does not include: not liking the home or area in which you live, bad spending habits, starting a family
5. The Seller will have to provide financial information.
a. The Seller should be prepared to fill out a financial statement
b. The Seller should be prepared to provide tax returns, bank statements and proof of income or unemployment benefits
Bonus: Most lenders now require the loan to be in default or very near default. However, short sales are not necessarily quick -the home could still go into foreclosure during this process. Please watch your time frames - work with your Lender and your real estate professional.
If you don't like the home you own or the area in which you live, please visit with a local real estate profession about marketing and SELLING your home.
If you are facing hardship. please visit with your Lender about your options, including a short sale.
Based on your situation, your motivation, and the guidelines, a short sale may be the very best option for you - Please let your Lender help you decide.
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Contact Debbie DiFonzo, Broker, United Country VIP Realty to sell your property or to buy property in Lebanon, Conway, Marshfield, Buffalo, Bennett Springs and the surrounding areas. I specialize in country homes, hunting land, river front property, dairy farms, large acreage and commercial property in Southwest Missouri. 417-532-2031 Lebanon MO office phone or email: missouriagent@msn.com
Copyright © 2009 By Debbie DiFonzo, All Rights Reserved. Five Tips to remember when thinking about a short sale.
Disclaimer: The information provided herein is obtained from multiple sources and is deemed accurate but not guaranteed. Information subject to change without notice.
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