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PhotobucketA short sale is a long process. Does that sound contradictory? Not really. “Short” refers to a sale where the amount owed is less than the value of the home – hence, the sale proceeds are “short” to cover the mortgage. “Long” refers to the length of time involved in getting the short sale approved by the lender.

To put it simply, in order for a short sale to succeed, the seller has to: 1) find a buyer; and, 2) persuade the lender to accept the buyer’s offer. But how does the seller get these done?

HOW DO YOU FIND A BUYER?

Get the property listed. The best way to get your property advertised and get the widest exposure is through the local MLS or Multiple Listing Service. All Realtor® are subscribed to the MLS and are able to list your property for free.
   
Price the property right. The high inventory of homes on the market has led to an upsurge of value buyers seeking a bargain in real estate. A seller may get tempted to price his home higher than what buyers are willing to pay. On the other hand, pricing your home too low in order to attract buyers may result in an outright decline from your lender, or at best, a counter offer for your buyer.

When pricing your home, make sure you are aware of comparable properties in your neighborhood, and take this into consideration. An experienced Realtor® will provide you with a free Comparative Market Analysis (CMA) in order to help you in setting your list price.
   
PhotobucketLet your Realtor® do the work. A knowledgeable Realtor® knows what marketing strategies to use in order to find sensible buyers and receive offers in the least amount of time. He/she may hold open homes, distribute flyers, and/or create a video or virtual tour that will highlight the appealing features of your home. He/she may get your listing published in various media as appropriate for the target buyers. If the property is priced right, and your Realtor® is diligent in marketing your home, you should be able to receive an offer, or even multiple offers, within a reasonable amount of time.

A regular review of changing price trends is necessary to make sure that the list price is still current and consistent with the market movement. Be open to price adjustments, if it becomes necessary.
   
HOW DO YOU CONVINCE THE LENDER TO APPROVE YOUR SHORT SALE?
   
PhotobucketBe proactive with your lender. Even before you list your home, find out from your lender what their short sale requirements are, and have them in ready mode. Aside from a convincing hardship letter, typical documents required by a short sale lender are:
  • Income documents, e.g., paystubs, tax returns
  • Financial worksheet (expenses vs. income)
  • Bank statements
Prepare a compelling hardship letter. Remember, the reason for short selling your home is hardship, which may be caused not just by reduced income, but also by some stressful event that now makes it a burden to continue with the mortgage. Your lender has to fully grasp this in your letter.
   
Confirm that your buyer is pre-approved. Before submitting the best offer to your short sale lender, a knowledgeable Realtor® will want to verify that the buyer is indeed capable to completing the transaction. A phone call to your buyer’s loan officer will confirm this.
   
Submit a complete short sale package. Missing paperwork will cause delays in the approval process, as your lender will most likely review a short sale only when the file is complete. Remember you have a buyer waiting for the approval. The longer the wait, the higher is the chance that your buyer will walk.

When you give authorization to your Realtor® to negotiate with your lender, he/she will be in close and constant contact with your lender until a response, hopefully an approval, is obtained.
   
Make sure you work with a Realtor you can trust.

Act now! If you need help with buying your dream home, call us. We can help.

Main 510-791-7644 · Toll-Free 800-474-0341 · Fax 866-511-7224

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A short sale is a long process. Does that sound contradictory? Not really. “Short” refers to a sale where the amount owed is less than the value of the home – hence, the sale proceeds are “short” to cover the mortgage. “Long” refers to the length of time involved in getting the short sale approved by the lender...

   
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