Short sales. That’s the buzz word these days, isn’t it?
Well, most of you probably know what a short sale is, but just in case you didn’t, in a nut shell:
A short sale is when a homeowner owes more on the house than its worth & must seek out lender approval in order to sell it at a loss.
Sounds simple enough, but that’s just the tip of the iceberg…
What you didn’t know is that all banks negotiate short sales differently & each requires a laundry list of items for consideration. Most importantly, in order for a successful short sale to occur for the seller, the bank must provide an approval letter & crucial legalese to prevent any future debt or taxes owed by the seller.
The key to a successful short sale is to have a knowledgeable & an experienced agent helping with the short sale process. Considering we’ve been in a down market for a while, it seems like all agents should know how to conduct a short sale BUT most agents don’t have a system for a smooth transaction.
That’s why the short sale success ratios are so low. The agents behind the scenes are not doing their homework & are hoping the bank will approve the short sale. #fail
In San Diego, more than 50% of the inventory are short sales & those numbers are higher in some communities.
Good news, you have someone to trust with success with short sales in North County.
One of my clients had a short sale where they owed twice as much as the house was worth. (very common) We sat down, collected the proper paperwork & negotiated with the bank. A few months later, the bank approved the short sale. The conditions of the short sale were favorable to both the seller & the buyer. The seller sold the property without any lingering debt & the buyer got to purchase the home at a smokin’ price with 3% in closing costs. SUCCESS!
Another one of my clients bought a short sale property where, you guessed it, the seller owed $300,000 more than homes value. The paperwork was processed in the exact order the bank required & in about 2 months we received the approval letter from the bank. This, too, came with no legal recourse on the seller. Plus, the buyer scored with $6000 in closing costs! SUCCESS!
Short sales are getting approved…it just takes the right agent to make it successful.
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