Is a Short Sale Right for You?

Do you owe more than your home is worth?
Are you facing foreclosure?
Consider a Short Sale

Short Sale FAQ's

A short sale happens when a seller sells below his cost. The term in our industry has gown to describe a sale that is indeed below what is owed to the bank. The existing lender agrees to accept a lesser amount due on their secured lien in order to release the collateral from the note. In essence, it allows the seller to establish an asking price at less than what they owe their lender.

The typical short sale process is as follows:

Step 1: Hook up with a competent and trustworthy real estate brokerage that can help you identify if you are a candidate for a short sales request.

Step 2: Order a payoff statement from existing lender and determine if there is a pre-payment penalty.

Step 3: Work with your agent and title company in determining preliminary closing figures.

Step 4: Contact existing lender’s loss mitigation department to determine their requirements to formally request a short sale.

Step 5: Owner, Title Company, and real estate agent work with lender on satisfying lender’s requirements which could include a Broker Price opinion, copy of full appraisal, copy of estimated HUD, etc.

Step 6: Await lender’s approval or denial of short sale request.

Step 7: Inform all parties of approval or denial and any special requirements made by existing lender, such as renegotiating sales price, removal of contingencies, and any time specific limits.

Step 8: List and sell the property.

If you are considering a short sale for your property, call me today to learn more and to find out if a short sale might be right for you.

BUYING A SHORT SALE -TIPS & ANSWERS