6 quick tips on making the short sale smoother transaction
We've all heard the short sale nightmares...the endless waiting for the bank to approve the short sale or needing to send in additional documents. Short sales if started off on the right note, does not have to be a painful experience. I have jotted down 6 tips on making the short sale a smoother transaction.
1. Finding the right Realtor and finding the right seller..it has to fit for both parties. A good short sale Realtor will be interviewing you asking you questions and surmising if a short sale is the best situation for you. You can list your home with any Realtor, but it does benefit you to list with a Realtor who has perfomed short sales and who has a good track record.
2. Understanding your loan and lenders- One loan is better then two loans, it is easier to negotiate with one loan then with two loans and two different lenders. Tell your Realtor if you have HELOC loan as well. Understand each lender has their own guidelines and rules that must be followed. Know who owns the loan, your Realtor can help you with this.
3. Gathering your financials- Be prepared to submitt your financials and sometimes the lenders may want an update on your financials every 30 days. Be ready if they ask for an update. Have all your documents ready when you meet with your Realtor at the time of the listing appointment.
4. Prove your hardship- The lender needs to understand what caused the missed mortgage payments or what is causing the hardship now . Be ready to write this down on paper. Your hardship letter should be no more then a page, half page is better. You want to be factual and to the point, keep in mind the person reading your hardship letter may have just read 200th hardship letter and your letter is now number 201 to be read. Remember to sign your hardship letter.
5. Finding the right buyer- It will be with your Realtors guidance to determine the serious buyers from the tire kickers. Low ball offers seem to come from investors, and sometimes from owners occupants with unrealistic view on the value of the property.
but a low ball offer will only cause delay to the inevitable. The banks will not give the property away. The banks will do their due diligence and have an apprasial /bpo performed, giving the bank the FMV (fair market value). You may want to jump at the first offer but let the professional, your Realtor help you with that decision.
6. Making the home available- Sellers you have to understand and come to terms, you are doing a business transaction, a short sale with limited time frame before the banks decide to foreclose on the property. You must make the property available and work with your Realtor. Most banks will not perform any repairs and most sellers do not have the extra cash on hand to do any repairs. Keep in mind, when I take the listing It is marketed "As-is" sale.
Yes, shorts sales are not your traditional sell, and it is not for the faint at heart, it does take a lot of work, but with the right Realtor and the right seller you to can have a successful short sale.
Visit my website at www.Houston-shortsale.com
Best regards
Christina
713-269-9235