wikipedia defines a short sale as "a sale of Real Estate in which the sale proceeds fall short of the balance owed on the property's loan". Therefore, there are several steps to take in order to successfully complete a short sale. This is why it is important to have a knowledgeable, reputable Realtor on your side. There is an incredible amount of time, effort, expertise and knowledge that are necessary to be able to negotiate with the lender in order to get the job done.
1. List your home with The Evelo Team. We will be able to deal and negotiate with the mortgage company(ies) on your behalf. Many times there are more than one mortgage on the property so multiple companies will be involved in the negotiations. An experienced short sale agent will give you a much better chance of successfully short selling your home. Also, through our network of agents, clients, etc. we will do our best to find the right buyer. Plus, you will never have any out-of-pocket expenses that will be paid to us since everything will be paid by the lender.
2. Together with your agent, you will need to provide many details to go into the Short Sale Package. Items that you will be asked for will include: bank statements, tax records, hardship letter, etc. The Evelo Team will walk you through the process to make it a much easier and less time consuming for you.
3. It is important to listen to your agent. They will tell you exactly what needs to be done to get the home on the market. Don't worry or get defensive about the price. Your agent will pull the Current Market Analysis (CMA) to provide the best pricing strategies. The lender will also order an appraisal or a Broker's Price Opinion (BPO) for their records as well. The purpose of a BPO is to determine the fair market value of the property.
4. Once there is an offer from your potential buyer, the lender will either approve, reject or counter the offer. Then it is the buyer's turn to accept, reject or counter the lenders offer. The thing to always remember is that the lender has the final say so. You, the seller, cannot negotiate the terms.
5. Once the short sale has been approved by the lender you are well on your way to a successful closing. Again, the lender has the final say and will determine all of the terms associated with your short sale transaction.
6. Patience is a virtue! Please keep in mind that short sales will take some time. There are many people involved and the details for the entire process will take a considerable amount of time. The Evelo Team will work with the buyer and/or buyer's agent to make sure that they comply with all terms that are given by the lender.
7. Consult with a tax expert to make you aware of any tax implications. The Evelo Team has a great network of people that can help you with all aspects of a short sale.
8. Finally, it's time for closing! Yes, you won't walk away with any profit, but you won't bring anything to the closing table. After closing you will be relieved of the home and the debt.
As experienced short sale Realtors, The Evelo Team recommends that you start the process as early as possible. Denying there is a problem will only add stress and time to your life. The process could take 3 to 6 months from beginning to end (depending on your situation). We look forward to providing you with a free no-obligation consultation.
Please call us at 317-863-4663 or contact us by email at Team@EveloTeam with all of your short sale questions.