What to expect when Selling a Short Sale:
· Thank you for contacting a member of the Walker Derby Team to discuss the possibility of selling your home as a short sale. We are committed to making this a smooth transaction and have a 100% lender approval record and dozens of positive stories from past clients to back that up.
· If your home is under water and you have run into some changes such as losing your job, health issues, job transfer, ARM loans resetting at rates you can no longer afford, divorce, etc. you may be a perfect candidate for a Short Sale scenario.
· Your home sale will be a TEAM effort and three members will contribute to making that happen. Jennifer Walker-Derby will be your listing agent who will coordinate the marketing campaign for your property and contract negotiations. Sandra Patrick is our Short Sale Coordinator who will work with you to obtain all necessary documentation the banks will require and handle bank negotiations. Frank Derby is our exclusive Buyer’s Agent who will follow up on all leads pertaining to your property.
· Once you have decided to move forward with the short sale you will find the process begins rather quickly. Within 48-72 hours of hiring the Walker Derby Team your home will be listed and the marketing blitz has begun! It is important to follow up immediately with our Short Sale Coordinator (Sandra) once introductions have been made. Note that some banks can eat a lot of time by simply acknowledging our Authorization Form which is the first step of the process.
· Once a home is listed with a member of the Walker Derby Team, our Short Sale Coordinator will get to work immediately! The listing paperwork is sent directly to the lien holder(s) along with other required information: Letter of authorization, 2 years of taxes, a hardship letter from the seller, several bank statements, 60 days of Paystubs and a monthly budget breakdown. After submission, we wait for an offer from a buyer.
· Short Sales are very attractive to buyers as they mimic foreclosure pricing however are normally in very good condition since they are still Owner Owned as opposed to some of the nightmares a buyer will find when foreclosure shopping.
· Be prepared for your home to go under contract quickly! Most short sales go under contract within the first 30 days, many the first week they are listed. If your home does not move within the first 30 days we will reconvene and consider a price reduction.
· I think it is very important for you to read the section on “What to expect when obtaining Short Sale Approval”. Depending on your bank, short sale approval can be a very tedious and lengthy process lasting anywhere from 60 days to more than 6 months. Please be prepared for lengthy timeframes where there are no updates available. This can sometimes be frustrating compared to the rocket speed we were working in the beginning.
· Due to the nature of short sales, often buyers get “cold feet” in the process and it is not uncommon for one short sale listing to cycle through several buyers before obtaining final bank approval. The most important step is submitting the first offer to the bank to get the short sale process started! Even if a buyer terminates the agreement, we are ok as the ball is already rolling. We will just wait for a new buyer to replace the terminated one while the original offer continues through the short sale process.
· Many sellers are anxious once their home is under contract however that does not mean you need to make immediate plans. Just be prepared. We will give you updates on the process. You will have about 30 days in between Final Approval and closing.
· If the home is vacant you may want to call in some favors from friends or neighbors to help cut your grass during the summer months. Overgrown lawns and gardens may accrue HOA fines and penalties. Some municipalities even fine homeowners if they do not maintain their homes and yards. All liens of this type must be paid prior to closing and most banks will not agree to absorb those costs in the short sale.
· It is important to keep your utilities on and running. Although most short sales are sold “AS IS”, the buyers are granted an inspection due diligence period in which systems and appliances will be tested. Unfortunately most inspections do not take place until the end of the process and contracts do stipulate that the seller will have all utilities on for buyer’s inspections. To avoid reconnection fees and long wait times we suggest you keeping all utilities turned on through the date of closing. |
