Short Sales
Trusted Advisor in the Short Sale of Your Home ~
Dennis Sallee, Realtor
Scientists have proven that no two snowflakes are a like and the same holds true of Short Sales. So, what is a Short Sale? In a nut shell, a Short Sale is a type of real estate transaction that occurs when the home owner owes more to his lender(s) than the current market value of the home. Although the home is sold by its owner, the purchase offer has to be approved by the bank or investor who holds the loan. In most cases, a hardship has occurred making it impossible and or unlikely your ability to continue making your payments resulting in a future foreclosure. So what are my options? There are no easy answers but there are solutions.
We hope this information will help you gain a better understanding about the Short Sale process. We understand that this decision may be a very difficult choice to make and I’m sure you have tons of questions, so it might be worth an interview.
Contact me today. Looking forward to working with you!
Dennis Sallee
Understanding the Short Sale Process – Initial Consultation
Does a doctor prescribe a treatment until he knows your symptoms? I think not! Your Short Sale will involve many different players so, we begin with a series of questions to investigate your situation and goals and advise you to speak with an attorney. (DISCLAIMER) We are real estate professionals, not real estate or tax attorneys. Your legal rights, your financial future and the ability to purchase another home are at stake. Being informed of any possible tax and legal consequences early in the Short Sale process can have a more favorable outcome. Upon your request, we can recommend several attorneys who specialize in the Short Sale process.
Let’s Get Started – How do we Begin?
Once we all feel that a Short Sale is in your best interest, the necessary documentation needs to be gathered and submitted to the bank. Our in-house Short Sale administrator-negotiator will make their introductions and help you gather the needed information. As we said before, every Short Sale will be unique. Every bank will have their own set of rules and procedures so it’s a big advantage to have an experienced Short Sale negotiator who knows the differences of each lender, work on your behalf. Once all the documents have been submitted to the bank, it’s time to place your home on the market.
Home on the Market – What’s next?
Now is the time to present your home to the real estate community and the general public. Selling your home as a Short Sale is no different than any other home sell with one exception, (we will require bank/investor approval). We will council each homeowner, include helpful showing instructions and provide each client with a unique customized marketing plan designed to sell your home. We know how to price your home so the lender(s) will approve the short sale and then follow the timetables the lenders mandate. Once we have an acceptable offer and a well qualified potential buyer, escrow is opened and the purchase contract is submitted to the bank to begin the Investor Review process.
Investor Review – What Does that Mean?
Now that the completed Short Sale package (homeowner documents and acceptable purchase offer) have been submitted to the bank, a mediator will be assigned, usually within the first 30 days, and a bank appraisal (BPO) will be ordered. Once the market value has been established, negotiations between the bank/investor and property owner can begin. This process can be lengthy so periodic timely updates will be provided as needed to you and our team.
How long does this process Take? – Good Question!
The rules and regulations surrounding short sales are very complex and always changing. Since no two Short Sales are the same, we can only estimate a completed time table. The variables have to do with your loan(s), the actual lender(s) or investor(s) involved and any financial or tax implications specific to your situation. Our job is to keep all parties informed and updated. We have seen the process take 14 days to 9 months.
Decision Time – Discuss the Negotiated Settlement
When a negotiated settlement with the owner’s lender(s) has been reached, the agreement notice will be issued for the owner’s review and signatures. This is the time when your attorney and tax professional should be involved. The goal is a win-win situation for all parties involved by providing homeowners with options to avoid and stop foreclosure, minimize any deficiency judgments and allow the investors to minimize their losses. At this time, you will have all the necessary information available to make an informed and educated decision concerning your home sale.
Continue to Close – Are We Done yet?
Once you and your lender(s) and the buyer’s have a negotiated agreement, we will proceed to close the transaction according to the purchase contract and lender agreements. These timetables vary, usually 21 to 45 days. The buyer will have the option to do any inspections they feel necessary to satisfy any concerns they may have. During this time, we will stay in close contact, keep you informed and notify you when and where to sign your documents at the escrow office. In a short while, we will celebrate your new freedom from this financial burden and stress.
In Closing – Please be Patient
At times you may feel things are going too slow, but remember this is a complicated transaction and will take longer to complete. The current economic conditions have the banks overwhelmed and slow to react. With that in mind, we want to remind you that the whole purpose of the Short Sale transaction is to position you and your family for a healthier stronger financial future.
Congratulations on a successful Short Sale!
“Sometimes life may knock you down, it doesn’t have to knock you out”!
