Thinking About A Short Sale?
Before you contemplate a short pay sale, more commonly known as a SHORT SALE, you may want to know what the steps are. When doing a short sale, there are actually several steps involved for it to be successfully completed. That’s why its important to have a knowledgeable Realtor on your side. It takes an incredible amount of time, effort, and expertise to negotiate with the lender/s and get the job done. Here is a brief overview of the steps to take to successfully sell your home as a Short Sale.
First you must find a Buyer, because without a buyer there is no short sale. In order to find a ready, willing and able buyer, you need to list your home with an experienced Realtor who can not only put your home in front of other Realtors and their clients, but the millions of people who search the multiple listing service in their area. You will want to price the home a little below market value to attract a number of buyers in a short amount of time that are motivated to make an offer to buy your home. **Remember, time is working against you and your goal is to be relieved of the debt. Don’t make the mistake of pricing the home as you normally would, be very aggressive with the price.
A complete short sale package, which includes the highest and best offer/s is submitted to the lender/s. Once a buyer is found and the contract is executed, its time to submit the “Short Sale Package” to the lender/s. An experienced Realtor will know what items are required to be included in the package and can provide you with a list. Right now, you must understand that until a buyer is found, there isn’t much to do. However, it is important to have all the necessary documentation that will be required for the lender already available and ready for them to consider approving a short sale.
Your current lender will order an appraisal or a Broker’s Price Opinion (BPO). Once the lender has received the “Short Sale Package” the lender will order a BPO from a local real estate agent. Once the BPO is completed it will be submitted to the lender. It will mostly likely be a Drive-By BPO unless the condition of the property warrants an interior inspection. The purpose of the BPO is to determine the property’s current fair market value. This will be a pivot point for the lender’s negotiation. This generally occurs within a week of the offer being submitted.
The lender will either approve, reject or counter the buyer’s offer. Most of the time you can expect the lender to make a counter offer. The buyer will then decide whether to accept the lender’s offer, reject it, or make a counter offer back to the lender. Just remember that the lender has the final say and must approve the sale.
Once the lender Approves the Short Sale you are half way there! If the lender approves the sale they will issue a letter of approval which will determine the terms of the short sale transaction. It is important that your Realtor insures that the buyer complies with the terms and timeline the lender issues in their approval otherwise all work has been in vain. If all goes well the sale will close and you would have relieved yourself of the home and the debt.
As an experienced short sale Realtor, I recommend that you start the process as early as possible. The entire short sale process can take between 3-5 months from beginning to end. Your Absolute Home Source Team serves the entire metro Atlanta area. We look forward to providing you a free no-obligation consultation.
Jaime Avery
Direct (678) 612-7921, Fax (877) 276-1237
First you must find a Buyer, because without a buyer there is no short sale. In order to find a ready, willing and able buyer, you need to list your home with an experienced Realtor who can not only put your home in front of other Realtors and their clients, but the millions of people who search the multiple listing service in their area. You will want to price the home a little below market value to attract a number of buyers in a short amount of time that are motivated to make an offer to buy your home. **Remember, time is working against you and your goal is to be relieved of the debt. Don’t make the mistake of pricing the home as you normally would, be very aggressive with the price.
A complete short sale package, which includes the highest and best offer/s is submitted to the lender/s. Once a buyer is found and the contract is executed, its time to submit the “Short Sale Package” to the lender/s. An experienced Realtor will know what items are required to be included in the package and can provide you with a list. Right now, you must understand that until a buyer is found, there isn’t much to do. However, it is important to have all the necessary documentation that will be required for the lender already available and ready for them to consider approving a short sale.
Your current lender will order an appraisal or a Broker’s Price Opinion (BPO). Once the lender has received the “Short Sale Package” the lender will order a BPO from a local real estate agent. Once the BPO is completed it will be submitted to the lender. It will mostly likely be a Drive-By BPO unless the condition of the property warrants an interior inspection. The purpose of the BPO is to determine the property’s current fair market value. This will be a pivot point for the lender’s negotiation. This generally occurs within a week of the offer being submitted.
The lender will either approve, reject or counter the buyer’s offer. Most of the time you can expect the lender to make a counter offer. The buyer will then decide whether to accept the lender’s offer, reject it, or make a counter offer back to the lender. Just remember that the lender has the final say and must approve the sale.
Once the lender Approves the Short Sale you are half way there! If the lender approves the sale they will issue a letter of approval which will determine the terms of the short sale transaction. It is important that your Realtor insures that the buyer complies with the terms and timeline the lender issues in their approval otherwise all work has been in vain. If all goes well the sale will close and you would have relieved yourself of the home and the debt.
As an experienced short sale Realtor, I recommend that you start the process as early as possible. The entire short sale process can take between 3-5 months from beginning to end. Your Absolute Home Source Team serves the entire metro Atlanta area. We look forward to providing you a free no-obligation consultation.
Jaime Avery
Direct (678) 612-7921, Fax (877) 276-1237
