Short Sales and Real Estate in Lexington SC

Short Sale in real estate is nothing new but is becoming more evident. There are benefits for both, the lender and you. The short sale process is not easy, and can be stress full. Homes are sold for less than the mortgage you owe on it and lender forgives the remaining debt, there are few things to know on how to do a short sale, so it does not become too cumbersome and time-consuming. Banks see the short sale process as a an alternative to foreclosure, and is usually willing to accept a smaller pay-off or a deed-in-lieu of foreclosure to simply minimize its loss rather than go all the way the long and costly road of foreclosure. Short sale home is far more desirable to the general home-buying market than a foreclosed one. The money a bank looses is less than if the lender takes on the short sale is rather small compared to the expense of foreclosing on the property.

Short Sale Process (subject to change from one lender to another)
Contact the Lender
Lenders will not talk to investors, potential buyers or real estate agents unless the borrower instructs to them. You will need to get their approval in writing, contact the lender with that approval, and make the first telephone contact. You must decide if you want the assistance of a 3rd party to help the seller or you want to do it on your own. If you want the assistance of a professional contact Edwin Gerace 803-957-5566

The seller must create a hardship letter is the cover for the short sale package. It is a lot like the cover letter for a job resume. It must be convincing and complete. The lender must get the first impression that it is a short sale or a foreclosure or bankruptcy. This letter must paint the picture of your financial situation and honesty is key. There is a paper trail for all your finances.

Short sales will not work if there is sufficient equity in the home for the lender to sell it and at least break even in a foreclosure. The homeowner must be "upside-down" in their loan. Learn how to determine if this is the case.

Lenders will usually want to validate the seller’s financial situation by looking at bank statements, investment accounts, along with examining pay stubs and other financial records.

The meat of your short sale presentation backs up the statements made in the hardship letter. You prepare a thorough and detailed set of documents and financial data to support the claim that a short sale is a good solution for the lender. This is the time to put all your cards on the table. Sellers must be honest and forth coming with all data.
Contact an agent
When obtaining a short sale listing you must explain to everyone the process of the short sale. Since no one can predict with certainty what any bank will do in any situation, do not tell anyone in the transaction that this will be fast and smooth. Listing documents should state “ This list price is subject to a 3rd Party Bank Short Sale Approval”. However, it is always better to under promise and over deliver throughout the entire process. Otherwise, everyone gets frustrated. You need to either have your agent be in control working with the bank ( You will have to give the bank permission to talk to the realtor) or you will need a 3rd party person to be the contact for you and the bank.


Buyer for House
Once you have a buyer in place with either a contract or offer to purchase, we must manage the expectations of both the buyer and the buyer’s agent. If the purchaser is buying a home to live in, this means they probably love the house and are already thinking of things that they can do to the house to make it their own. On the other hand, the buyer’s agent is motivated by getting the sale closed so that they get a paycheck. Because agents and their buyers are nervous, you will need to manage their expectations. We have made this easier by allowing all of you to track the short sale online. Time is something that you cannot control. Example: Bank of America as of today said any offers they receive they wont get back to you in 21 days. They are the fastest bank.

You may have to go back and forth with the loss mitigation department at the lender to get an acceptance of a short sale. Learn about this negotiation and the importance of a fast close.

The lender will review a settlement statement, which will indicate the proposed selling price, remaining loan balances and itemize all expenses, including real estate commissions and other fees and expenses associated with the closing.

Because of the documentation required, the short sale process can be lengthy. But if done correctly, it can work well for all parties involved. The lender avoids the uncertainty of the foreclosure process, the seller avoids a foreclosure on his or her credit report (along with potential bankruptcy), and the buyer hopefully got a good deal on a property.


Approval from the sellers bank
Once you receive the lender's approval will give the parties a maximum of 30 days to get the deal closed (it is occasionally shorter)

Neither the lender nor the title company can close overnight. The title company must get the HUD-1 for approval 72 hours before the closing. This allows time to submit the file to the lender so that there are no surprises at the closing table.
These are the essential steps to a problem-free short sale. Always remember that accurate paperwork and good communication with the buyer’s agent are the two most important parts of the short sale process as long as you leave the actual facilitations to Short-Sale-Negotiations.

For an agent that has knowledge in the Short Sale process email me mail@609sold.com
For a list of homes that are available that are short sales email me mail@609sold.com
For more information about listing your home as a short sale email me mail@609sold.com