What’s The Fifth Step To A Short Sale?
Short Sale Process Step 5:
I've written previous blogs regarding the short sale process and when you're to this point, the sale of your home is getting closer. The bank has already done their BPO, or broker's price opinion and they are ready to start negotiations.
Keep in mind that the lender has thousands of short sale files on each negotiators desk and there really isn't too much thought put into the offer we have at hand. Up until this point, they've verified that you cannot afford the home, or you have a hardship that is going to require you leave the home. They've also verified that the offer that is on the home is reasonable for the market value. All information is filled into their mathematical formula that determines if this is a good deal for them. The lender is only willing to work with you if they think they are the ones that are getting the deal. IE: If they think the they're going to lose more money but not doing the short sale, they will most likely work with you now, as opposed to other remedies that are available to them.
What's next? Trying to figure out if you are going to be required to submit any money in the form of cash or in the form of a note due and payable to the lender over time after the home closes. Should the lender present you with any of these options and you comply, a final submission to the underlying investor takes place and a hopeful approval comes. Should the lender present you with these options and they are not acceptable, or you cannot afford to comply, we need to negotiate these points. As I've always said, these are negotiable points and the goal is to get to the closing table with exactly $0 out of pocket.
Contact Us at the Twin Cities Short Sale Realtor and we can discuss your personal situation and if a short sale is right for you.
What’s The Fourth Step Of A Short Sale?
Short Sale Process Step 4:
Previous to this step, I've written about Short Sale Step 3, gathering all the documentation to submit to the lender. Although this Step 4 involves the negotiations with the lender for your short sale request, this step involves the most important aspects as far as the lender is concerned - the BPO, or broker's price opinion.
Because the lender will base all of their negotiations on the value of the home, it is important to make sure the agent or appraiser that is performing the BPO does not over value the home. The Twin Cities Short Sale Realtor will either conference with the agent or meet the agent at the property with good comparables in hand to show that the offer we have received on the home is fair for the condition, style and location.
Once the BPO has been completed and submitted back to the lender, we begin the negotiation process so your lender is satisfied that the offer submitted for short sale meets the minimum requirements for the underlying investor. Once we have worked with your lender to ensure the minimum requirements are met, your offer is awaiting approval on any final negotiations before being submitted to the underlying investor.
Extremely Fast Short Sale Approval
Short Sale Submitted, Reviewed & Approved In 2 Weeks!
The Twin Cities Short Sale Realtor recently received an offer, compiled the short sale package, submitted the offer to the lender, and received a full approval within 14 days! The approval required no cash out of the owner's pocket and is a full satisfaction of lien, where no deficiency judgment will be pursued.
This is of course great news for the homeowner (seller) involved. The short sale process is typically much longer and these results are far better than the norm, even for the Twin Cities Short Sale Realtor.
Please contact us if you would like to discuss your current situation.
What’s The Third Step Of A Short Sale?
Short Sale Process Step 3:
I recently wrote about Short Sale Process Step 1 and Short Sale Process Step 2. By now, we've successfully marketed your home for sale and we know that because you've received an offer on your home and you've elected to sign it.
The next step is to gather all your documents that will be required to submit to your lender for consideration of short sale. If you've been told that your short sale is a guarantee, you've really received some bad information. Selling your home on a short sale is a request that we make of your lender(s). The most important task of making this request of your lender is to ensure that we have a full and complete short sale package. When we prepare a complete short sale package, there is nothing that we leave out. We submit all information the first time to your lender. Incomplete short sale packages will most certainly lead to a slow response or an outright denial to the request.
Here is a common list of items that you will need to provide in order for us to prepare your short sale package:
- 30 days most recent pay stubs.
- 2 month's most recent bank statements.
- A hardship letter.
- Your monthly expenses.
- Your previous 2 year's W2's.
- Your previous 2 year's tax returns (the federal portion).
- If you are self employed, you will need your most recent profit and loss statement.
Once we receive all information requested, we work on the rest of the short sale package. These items can include:
- HUD1 Statement.
- Executed Purchase Agreement.
- Realtor contact information.
- Listing Agreement.
- Comparable listing and sold properties.
A full package is a "must have item" in the short sale process. The Twin Cities Short Sale Realtors are very meticulous when it comes to submitting full and complete packages.
Please contact us today if you'd like more information or if you'd like to discuss your personal situation.
What’s The Second Step Of A Short Sale?
Short Sale Process Step 2:
I wrote previously about the Short Sale Process Step 1, the first step required to sell your home on a short sale. Since you already know that making the decision to sell your home on a short sale was step one, step two will assume you've made this decision and the Twin Cities Short Sale Realtor has successfully marketed your home. You'll notice I mentioned that the Twin Cities Short Sale Realtor has successfully marketed your home.
To successfully market your home for sale means that we've received an offer, or multiple offers in some instances. Now, just receiving an offer isn't the save all. A low ball offer will almost never be approved. Offers plagued with excessive closing costs, or closing dates way into the future, or offers asking for a lot in general will typically have the same fate as the low ball offer. Part of the duties of the Twin Cities Short Sale Realtor is to ensure that the offer we've received has a pretty good change of being accepted from the lender. That means that the offer needs to be reasonable for the property. You may ask how the Twin Cities Short Sale Realtor knows that an offer has "a pretty good chance" of being accepted. It's simple: we have the experience and the knowledge to understand the practices of the lenders while they are doing their due diligence when considering an offer for short sale.
After the Twin Cities Short Sale Realtor has successfully marketed your home, You now have a signed offer, and possibly a backup offer that can be submitted to the lender. Watch our Short Sale Process Steps for future steps you should be aware of in the Short Sale Process.
Contact Us today to schedule a private consultation with the Twin Cities Short Sale Realtor.
What’s The First Step Of A Short Sale?
Short Sale Process Step 1:
The first step of the short sale process is no different that making the decision to sell your home. With a few exceptions, there is nothing that can be done that is different than marketing your home for sale if you were selling and did not need to request a short sale from your lender. The Twin Cities Short Sale Realtor is an expert in the entire short sale process. That short sale process starts with marketing your home and receiving a purchase agreement, or offer to purchase, your home.
We are Realtors® at heart. One of the main functions of a real estate agent is to market your property to prospective buyers that are interested in your type of home. We do all the little things that go along with the real estate sales process including the basics:
- Getting your home on the MLS (Multiple Listing Service)
- Providing detailed information for prospective buyers
- Scheduling professional interior pictures and/or virtual tours
- Providing sales brochures
- Ensuring that your property disclosures are filled out completely and accurately
- Adding your real estate listing to all the appropriate online real estate websites
Although marketing your home for sale is Step 1, it's only a small portion of the entire short sale process. Working with your lender to get them to agree to the short sale request is by no means a short process, but it is the necessary part of selling your home. More information to follow with what's required to be successful while selling your home on a short sale!