What is a Short-Sale?
The formal answer: A situation in which a lender will accept less than what is owed on the property as pay-off of the loan obligation.
The ugly truth: A complicated process including, but not limited to, the following- constantly changing rules and guidelines, lenders who are under no obligation to agree to approve a Short Sale on your home, buyers who may not be patient enough to wait for the bank approval, and the ticking time-bombs of recorded Notice of Defaults, and pending foreclosures. This is not a situation to be taken lightly.
Will I get approved for a short sale?
Each scenario is different, and there are no guarantees. Your lender may choose to accept your short sale, while another lender may choose to proceed with foreclosure. It is essential that you choose a specialist who utilizes a team of experts with processes in place to help you navigate through the tumultuous waters.
What will a short sale cost me?
Nothing. The bank pays me to market your property and successfully complete the short sale process.
What should you expect during the process?
1 – Determine the value of your property. I will prepare a market analysis of your home, which will compare your home to others which have sold in your area. We will determine a price that is competitive enough that your lender will consider the proposed terms. We will also determine if you owe more than your home is worth, and discuss any possible hardships you have been faced with.
2 – We will start the marketing process and searching for a patient buyer. Some buyers prefer non-short sale properties because they are looking to move within a certain time-frame. The key to a successful short sale is having a buyer who is willing to stick through the long-haul of the short sale approval process. We need to find a buyer who loves your property enough to wait with us.
3 – We will contact your lender and request short sale approval. Since your lender isn’t obligated to approve your short sale, it is imperative that we package the request correctly according to your specific lender’s request. Ultimately, your lender makes the decision about the fate of your loan, so it is crucial that we work together to complete their requests in a timely manner. Lenders don’t have to provide justification for approval or denial of your request, and they don’t have to be consistent or reasonable.
4 – We wait.. and wait some more. Once an approval is obtained, the buyer will begin his process to obtain a new loan. Once that process is complete, you will sign documents and be freed.
The short sale process can be demanding and anxiety-provoking. Having a seasoned team of experts on your side to bear the burden is essential.