Benefits of a Short Sale      
A SHORT SALE 
 
 
Are you familiar with how a short sale works?
 
When banks accept a smaller or shorter amount as a payoff that is where you get the term Short Sale.
A foreclosure is a legal process in which real property is sold to satisfy a debt for which the real property has been pledged as security. We on the other hand, work to sell the property as a short sale and satisfy the debt with the banks before they foreclose.
 
BENEFITS OF A SHORT SALE…

 

  • NO out of pocket expense to you, the homeowner. The bank pays for all expenses and commissions.
  • Live rent-free during this process, giving you time to save up and make your exit strategy.
  • No ‘Foreclosure’ damaging your credit for 7 years – we negotiate with the lender to report your loan as SATISFIED.
  • Avoid Bankruptcy from damaging your credit for 2-7 years.
  • No ‘deficiency judgments’ so the bank can’t come after you for the difference of their loss – we negotiate that with your lender.
  • Receive up to $3000 for relocation assistance.
  • Free use of our 22 ft moving trailer.
  • It can take from 6 weeks to 6 months (this will depend on you and your situation).
 
Keep in mind that your lender may not accept a short sale therefore, it is “SUBJECT TO LENDER’S APPROVAL”. But, if you do NOTHING, and your property goes into foreclosure, you will not have representation at the auction, which means, that the lender can ruin your credit with FORECLOSURE,
give you a deficiency judgment and/or give you a 1099a for their loss and make you pay the taxes
on the deficiency amount.
 
 
Expectations and Timeline
of a Short Sale
 
 
 
 
Marketing your home:
Your home will be shown to both investors and traditional buyers. During this process, your property may be shown several times a day in some cases.  The goal is to get the highest and best offer in the shortest time possible. Those viewing or calling to view your home have been instructed not to bother you with questions regarding the short sale so as to not put any additional stress on you.
 
The First Offer:
Once an offer is received on your property, I will schedule an appointment for you to come in and sign the Purchase Agreement (this should only take 5 minutes).  Although you do need to sign one offer, your property can attract multiple offers. All offers will be submitted to the lender(s) for their review and you will not need to sign each and every offer that we receive. Towards the end of the process, when the lender accepts an offer, you will need to sign that offer in order for us to open escrow.
 
The Process:
Once we have sent the offer(s) to the lender(s), the actual Short Sale process can take anywhere from
4 weeks to 4 months. This timeline varies with each lender.  To keep you informed call me any time 
(801) 728-9999. I may not be able to return calls personally, since I’m spending most of my time negotiating a successful transaction with your lender(s). 
 
Please understand that I am not intentionally waiting to return phone calls and I am not ignoring your messages, it is simply not humanly possible for me to return all my own calls in a timely manner and still move forward to a successful transaction.   After the lender reviews the Short Sale package, a BPO (Broker Price Opinion) will be ordered by the lender. This is similar to an appraisal and once the lender receives their report, they will usually make a final decision shortly thereafter.  The lender orders the BPO/Home Valuation so they can figure out what their net proceeds will be (how much of a loss they will be writing off). Your property will remain ‘Active’ on the MLS until the lender accepts the offer.  Please be patient throughout this process. At times you may feel things are going too slow, but remember this is not a regular transaction and can take longer to complete.
 
The Accepted Offer:
Once an offer has been approved by the lender, I will notify you that we are going to proceed to close the transaction.  The lender may demand to close escrow anywhere from 10-30 days, so be prepared. If the buyer does not close by the lender’s deadline, the next highest bidder in line may be accepted.
 
** If the buyer(s) can not perform and close on time, the lender may decide to proceed with foreclosure thus severing the opportunity for all parties involved to complete a successful transaction. **
 
  
The Close of Escrow:
You, as the seller, will be instructed to sign seller documents at the escrow office. Please bring with you your I.D., all keys, garage door openers, and a good attitude. We will celebrate your new freedom from this financial burden and stress.
 
Your Financial Freedom:
Keep all of your copies of the documents pertaining to this sale in a safe place. 
Call me with your new forwarding address so I can keep in touch with you through the year and offer you assistance in preparing yourself for future success.  Try not to incur any new debt and try to keep low balances on any credit cards you may have. Maintain good consumer credit by not paying late on your currently active accounts.  Pay your rent by check or some other way that can be tracked to show evidence that you are paying on time. This will help you should you choose to purchase a new property in the future.