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The following is an overview of what you can expect during the short sale process and the steps taken during the transaction.
The calculation of the value of your property: This step is accomplished by preparing a comparative market analysis. This will give you a picture of the competition of the homes in your area, as well as the condition of these properties. At this time we price and position your home so that will attract buyers quickly and at a price the lender will agree to the terms.
Calculating the financial position of your home: At this point we analyze the value of your home (from the previous step) and compare this to all the debt (mortgage, etc.) that is supported by the home value. If the value of your home is significantly lower than your debt that is tied to your property - you are a candidate for a short sale.
Short Sale Application and how to prepare the package of information and documentation: Lenders require specific information and documentation. This step is critical in the short sale process. All the information in your short sale packet must be accurate and complete. The Smith Team will be with you to guide you through this process - from letting you know what is required, sending you a packet to get the process started, and contacting the lender on your behalf to ensure all applications and forms are correct.
The lender will require the following items:
- Lender short sale application.
- Hardship letter - outlining and substantiating the financial hardship and the reasons for requesting a short sale.
- Seller's financial statement and budget - all income and expenses.
(These items do sometimes vary from lender to lender)
Property Listing and Marketing: The Smith Team will start the process of selling your property. We have compiled lists of buyers expressly interested in purchasing a short sale house. We also implement the use of tools such as website listing and local advertising. The buyer of a short sale house must be willing to deal with deadlines that might get extended and other demands from your lender. The key to a successful short sale transaction is your lender. Once an executed purchase agreement is in place our work begins in earnest to negotiate for short sale approval from the lender.
Contact with your Lender: The Smith Team will be in contact with your lender to explain your situation. Lenders are not obligated to accept a short sale. The lender will closely examine the terms, and they are the ultimate decision maker and must give final approval for the short sale transaction to go to completion. The lender does not have to be reasonable - they may disapprove of any aspect of the short sale agreement, no justification necessary. Our team will use our skills of negotiation to obtain the best outcome and get the short sale approved as quickly as possible.
Tax repercussions:There is a possibility of tax repercussions in a short sale transaction. We will discuss tax liability that may remain after the completion of a short sale. We will advise you to speak with a tax attorney or tax professional, as you would with any tax related matter.
The Smith Team, as certified short sale professionals, can handle the challenges of short selling your property. |
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