Short Sales Information For Sellers

In the world we live in today we all no someone who is in danger of losing his or her home to foreclosure. I am asked everyday about the process of doing a Short Sale and staying out of foreclosure. Short Sales are great ways of mitigating the inherent problems that actual foreclosure may create.  When I go into a home to start analyzing whether or not the customer may be a Short Sale candidate, I ask a series of questions. The first being have you consulted with an attorney and or your accountant. If the answer is yes and your counsel also believes you are a candidate then we can get started. This is to insure that sellers are not trying to do a Short Sale when they may not qualify. When a Bank looks at your financial statement and they determine that you can pay for your home, you have almost no chance of a Short Sale. This is a wonderful tool for sellers and buyers alike but the Bank is going to protect there interest as well.

When speaking with the council of your choice you need to ask several questions. The most important one I believe is the Tax consequence question. Selling investment property in a Short Sale can be a taxable event to the seller, so definitely ask your accountant. Your personal home is generally not included in this as long as it is your primary residence that you are currently living in. Next great question is whether or not your legal counsel  will help you negotiate the Short Sale with the lender. This is important as having someone negotiate with the Bank other than yourself insures a much greater success in approval. Fees for this service can vary greatly but check around and do not over pay. Most attorneys today will do this entire service for less than $2000. This may seem like alot but when you are asking the bank to let you free from thousands in debt, it will be the best money you ever spent. Even attorneys will negotiate payments in this market so do not be afraid to ask.

I have a checklist that I like to go over with sellers to make sure that we both are prepared to make this a successful Short Sale. When you and your Broker sit down ask them just what is the strategy to sell your home. They most likely are going to try and talk you into listing your home cheaply to generate an offer quickly. Remember that the Bank must approve this, so you must insure that you price your home where it is beneficial to a buyer and the Bank as well. If you price it too cheaply then you may get an offer quickly but the foreclosure clock is ticking. If the Bank ultimately comes back and rejects your offer months later then you are way behind in the game. Banks want these homes off the books at the best price possible so be sure that your Realtor has years of experience in this particular area of Real Estate. I know Brokers that have been selling homes for over 20 years and have no idea how to help a seller or buyer with a successful Short Sale. Be sure to also ask your Broker if they have ever done a Short Sale with your particular lender. This is very important because all Banks are different in there Short Sale view and process. The larger the Bank the better chance of your Short Sale being approved. A Broker that has worked with many different Banks already knows what format each lender uses and this too will give you a decided advantage in getting an approval. These are just a few very important things that will help you during this uncertain time . I have dedicated my entire business to the Distressed Property market in hopes to help homeowners get through this time while providing the answers and solutions to help put your mind at ease. When it comes to Short Sales whether you are selling or buying, it’s simple you found the Williams Group

Thomas E. Williams II
Managing Broker
Pelican Real Estate & Development Co.

Speak Your Mind