Doing A Short Sale that Won't Fail

Negotiating a Short Sale That Won’t Fail

Sellers who are facing foreclosure and have opted to choose a short sale as the method of saving their home from foreclosure are facing two challenges. The first is successfully negotiating the short sale with a buyer that is qualified and willing to wait through the approval process. The second is getting the lender to approve the short sale. By breaking the process down in two parts, and hiring the right short sale experts you will be able to get your lender’s approval, sell your home and avoid foreclosure.

Part One

Attracting the Right Buyer

You will need to work with a short sale Realtor who is experienced with the short sale process and knowledgeable about selling real estate in your area. Here is how the process works:

1.  List Your Home with an Experienced Short Sale Realtor and Price it Right

It is important to list your home with an experienced short sale Realtor that understands the short sale process because they have sold many short sale properties.  Price your home at or below market value. The lender will be obtaining a Broker Price Opinion on your home’s value so you need to price correctly so the lender will approve the sale. Your Realtor can help you by giving you a comparable market analysis of similar homes that have sold in the area to determine the right sales price for your home.

2.  Market Home to Buyers/Investors Who Understand the Short Sale Process

Avoid wasting time with the wrong buyer. Time is of the essence to save your home from foreclosure.

The short sale Realtor will market your home to attract the right buyer by advertising the property in the MLS, the Internet and other media such as newspapers, magazines, etc. as a short sale, subject to third party lender approval, so buyers are aware that the property is a short sale. This way there are no surprises. As a result, you will be dealing with serious buyers/investors who understand the short sale process and are willing to wait for the home.  This increases your odds that your buyer will not walk away during the approval process.  

3.  Negotiate Short Sale Contingency With Buyer

Your Realtor will use special language in your contract to make sure that all parties understand that the closing is subject to third party lender approval.  All contract contingencies start from approval by the lender. Because of this reason you should only deal with cash buyers. Once your lender approves the transaction, the lender expects the buyer to close in about two weeks from approval. Cash buyers can do this. Buyers who are obtaining financing normally cannot meet such a deadline.

Part Two

Hire a Short Sale Company to Negotiate With the Lender?

It is crucial to hire a short sale company.  HomeBackers are expert short sale negotiators that can assist you with your short sale negotiations. Their telephone number is 937-754-1111, and their website address is http://www.ImBehindOnMyHousePayment.com. While some Realtors also negotiate short sales with lenders, it is recommend you use a short sale company who specializes in negotiating short sales and has established relationships with lenders. The short sale company performs the following functions:

·         Submits all the required short sale package paperwork to your lender so that there are no delays.  The short sale package includes your financial information, tax returns, W-2’s or 1099’s and recent bank statements, a financial hardship letter, authorization letter, copy of your purchase and sale contract, and your broker’s listing agreement. The lender must approve the contract and the broker’s commission agreement for the sale to close.  

·         Communicates with your lender until a negotiator is assigned and your transaction gets approved. The short sale company has systems in place to speed the short sale process up for you. Generally a short sale takes about 3 – 5 months to get approval or longer. The short sale company communicates with your lender on a regular basis, sometimes daily until the job is done.

The functions of your Realtor and short sale company are completely different, but both need to communicate with each other on a regular basis for your short sale to be successful.  The Realtor must also communicate with you and the buyer to keep everyone informed of the status of the short sale process.  Many deals fall apart because the buyer is not kept up to speed on the process.

Successfully negotiating a short sale process is a team effort.   By hiring a qualified short sale Realtor to market your home to the right buyer and using an expert short sale company such as HomeBackers, who will successfully negotiate the short sale with your lender, you will save your home from foreclosure and your credit.  To reach HomeBackers, call them at 937-754-1111 or visit their website at http://www.ImBehindOnMyHousePayment.com. You can then move on to other important matters in your life.