UPsides to Short Sales
Really? you ask. IS there an upside to this miserable process? In fact, there is! Short sales have become a way of life for many Realtors® in several states over the last few years and it seems to be spreading to even more states, as more of the ARM loans are coming due or homeowners lose their jobs or for any number of reasons.
Short selling seems to have even become epidemic in some areas. The fact is, that we all are going to eventually HAVE to engage in the process and we'd best become accustomed to it as it can be a positive experience if handled by the right people.
Myth: It could take 6-8 months to Close on a short sale.
UPside: Depending upon the bank and the negotiator, the process can easily be completed in 60 to 90 days, some even sooner.
Myth: Buyers are not getting that much of a 'deal' when they purchase a short sale property.
UPside: The properties that are typically selling in very short periods of time ARE the short sales--and the reason being, they're priced BELOW market value in order to get a quick sale.
Myth: Sellers are still having to sign promissory notes to contribute to the lender payoff.
UPside: On occasion, the lenders may require a small promissory note but, for the most part, the seller is given a clean approval letter with every short sale that we have seen.
Short sales prevent homeowners who are experiencing overwhelming debt, avoid severely damaging credit issues with foreclosures. If the buyer can and will be patient and not expect a 30- or even 60-day Closing on a short sale, that Buyer can certainly purchase a below-market value home and make this a win-win for both sides of the transaction.
Agents--Don't be afraid of representing clients in the short sale process--rather inform your Buyers that this could be a long process (but, not 6-8 months!) and prepare them along the way. Keep them informed of the status of the short sale status with the bank and have their own loan process ready to go to underwriting upon bank approval of the short sale.
Agents--If you're asked to represent a Seller in a short sale transaction and have never participated in one, PLEASE ask for experienced assistance or refer your client out to an experienced short sale Realtor®. You do NOT want to attempt this process and be unsuccessful with the short sale, thus potentially sending your Seller into foreclosure.
About the author:
(THE best Charlotte home search available - no kidding!)
Debe Maxwell, CRS/Realtor®/Broker
Broker@TheCharlotteScoop.com
Phone (704) 491-3310
