What is a Short Sale?
A short sale is a common occurrence in today’s market. A short sale in real estate is when a homeowner must sell their home for less than the amount that they paid for it. Here is an example:
Suppose James buys a home in 2005 for $300,000, and obtained a 5% teaser rate at the time. In 2007 when his interest rate is now 10.5%, he can no longer afford to pay the loan and the bank threatens to foreclose. But when James tries to sell it, he discovers that his home is only worth $250,000, and he can not find buyers willing to pay more. However, the bank may agree to a short sale and discharge the loan for less than what they are owed.
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How long does the process take for the deal to close?
Short sales typically take from four weeks to several months to close.
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What do we need from the seller and Listing agent?
1. Market the property.
2. Provide us with the required documents.
3. Perform a Market analysis
4. Meet the BPO/ appraisal agent.
5. Sell the property
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What should you expect from us?
1. An initial consultation to outline the short sale process.
2. We provide short sale negotiation
3. Track the property to notify all parties if a foreclosure date is pending.
4. Submit the short sale package to Lender.
5. Handle all communication and negotiate with the Lender.
6. Request the BPO.
7. Drafting the Purchase and Sale Agreement.
8. Perform a title exam to determine all lien holders.
9. Provide updates via tracking system.
10. Get the deal approved.
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What documents do I need from the Listing Agent and Seller?
1. Listing Sheet
2. Signed Authorization sheet
3. Offer
4. Mortgage statement
5. Pre-approval letter for buyer
6. Two years of W2 forms
7. Last two bank statements
8. Last two pay checks
9. Last two years of federal taxes
10. Financial information breakdown
11. Hardship Letter
12. Credit card statements
13. Listing Agreement
14. Comparative market analysis
