Need to sell your home but the value is less than what you owe?
Facing foreclosure and worried about the consequences?
Short sale may be your answer.
Services I provide to Short Sale customers:
~Listing your home and getting an offer in 30 days.
~Negotiate with your lender on your behalf.
~Sell your home for less that what you owe on it.
~Assist you in finding a new place to live
~Refer you to others you may need to speak to, such as real estate attorney, HUD approved counselors, etc.
~No out of pocket cost to you
Compassion – I treat my sellers with respect, compassion and dignity. Your transaction will be handled discretely. Short sales are becoming more and more common, but the process is an emotional one and sellers are my top priority.
Commitment – From the moment you contact me to discuss your options, you will have my full commitment. I am available to my sellers 100% of the time, 24 hours a day, 7 days a week, weekends and holidays to answer questions by phone, email, text or face to face. Whatever you need. I can work with that.
Professionalism – I work for you. From discussing your options, to negotiations with buyers, to handling your bank calls, to finding your next home to live in, you will receive prompt, professional, extremely full service that you can trust.
Results – My success rate is 100% in my short sale transactions with representation of the seller, with the exception of one sale, when the bank decided to allow the homeowner to stay in their home and work out a new loan modification. This was after 2 prior attempts at loan modification without my representation. My most recent short sale went under contract in one day, and the seller received $3,000 cash from the bank at the closing table.
Here is an article I wrote about short sales, giving you some answers to how it all works.
What is a short sale?
A short sale occurs when the property is worth less than is owed on the mortgage. The seller wishes to move, for any number of reasons, and the bank agrees to accept less than is owed on the mortgage note. For example, if a home was purchased for $250,000 in 2005 and current market analysis of the property shows the value is $150,000, the bank may agree to take a loss on the $100,000 difference.
Many times, when a homeowner is interested in listing their property as a short sale, the bank has not yet approved of the sale price. In that instance, if you make an offer on a home, the bank must approve the short sale price before the sale can happen. This process, waiting for the approval from the bank, can drag on for months. Some banks are speeding up this part of the process. Usually after the bank has approved the short sale price, the process can move rather quickly.
Expect the entire sale process, from contract to closing, to take anywhere from 4 months to a year. If the property has more than one mortgage, it can take even longer. A great question to ask your real estate agent is how many liens and which bank(s) are involved. Then you can gauge what to expect. Some banks have a reputation for processing these sales more rapidly than others. You can talk to your real estate agent for more information. Always use an agent who is experienced in short sales for this kind of transaction.
The short sale is not for the faint of heart. The bank asks the seller for a large amount of paperwork, often repeatedly throughout the process of many months. The buyer is waiting in the wings to see if they will be able to purchase the house. It's a waiting game in many cases.
The upside to the short sale, for the seller, is being able to walk away from an upside down property without a foreclosure on their record. In fact, some banks are offering a cash incentive to the seller, usually $3,000-$10,000 (depending on the price range of the property) to encourage these types of sales. If the seller has relatively good credit -apart from the short sale, they can be approved in a matter of 18 months to 3 years for a new mortgage, especially if they work to pay down any other credit accounts and keep their payments on time after the short sale. Additionally, there is no out of pocket expense for the seller to do the short sale, as the real estate agent's commission is paid for by the bank.
The upside for a buyer is usually they can get a great purchase price on a house. The buyer needs to remember they should be patient, because patience is very important in a short sale. The buyer must also remember, there are no guarantees that the bank will accept the offer. The bank has the final say. Additionally, the buyer needs to be aware that the seller most likely does not have funds to make any repairs to the home, they should expect to make repairs and buy the house in "as is" condition.
I hope this has helped answer your question about short sales. I have handled short sales on both the seller's side and the buyer's side. Let me know if I can further assist you.
Rebecca Romaine, REALTOR, Prudential Network Realty, 904-687-9488 www.rebeccaromaine.com