Sacramento Real Estate Views

The Short Sale Process

Stage 2

After you run the numbers and you’re convinced that keeping your home is just not a good financial decision, it’s time to get some advice from someone who has experience in short sales and can let you know about the process, what you’ll need to submit to the bank and time frames involved.

Short Sale “Specialists”

The first thing to remember, in my opinion, when picking a Realtor to help you get your home listed and sold is whether they handle the negotiations themselves or work through a professional short sale negotiator.

The banks don’t want to talk with Realtors.  Realtors are annoying and largely aren’t knowledgeable enough to get through the process without making mistakes costing everyone time.

Time is the mistake YOU DON’T want in the short sale process.  It already takes too much time as it is and making mistakes that cost time could mean the difference between getting a short sale done or being foreclosed upon.  Short sale is the better option for your financial situation than foreclosure.

(HORN TOOTING ALERT!)

I always retain the services of a professional negotiator.  My job is to price, market and get your home sold.  The banks don’t want to talk to me and frankly, I don’t want to talk to them.  I have 4 professional negotiators to choose from with experience with all major and some local banks.

Additionally, it’s easier to relate to someone who has been through similar experiences.

My family and I chose to sell our home short.  We know how tough the decision was for us and how agonizing it can be.  That said, we got past it when we realized that for the first time in years, we were in a better position than other people who were still underwater on their mortgages but not acting to change it.

In a few years, we will be able to purchase more home at a much lower price than we paid for the home we just let go.  Generally speaking, if you purchased your home from 2002 to 2009 or are over leveraged, it doesn’t pay to be a homeowner.

What The Bank Will Want To See

While a good majority of banks are now approving short sales without a financial hardship, most are still going to want to see there is some hardship that’s causing you to sell short.  Remember, this isn’t always the case especially with a Wells Fargo/Wachovia loan.

If you don’t have a hardship situation I wouldn’t let it dissuade you from trying to sell short.

To keep this article short, I’ve embedded a list of documents that we give to our clients at SellState.  Click here for a standard list of required documents.   Please understand that your lender may need more documentation than this.

This is a complete financial package with listing agreement, offer and hardship letter included that all lenders will need.

Time Frames

No one can know exactly how long a short sale will take to get completed.  Once the offer is sent to the bank, it could take 30 to 40 days or 6 months.  It really depends on the lender but the process has sped up over 2007 – 2009 time frames.

With a double dip recession in the housing sector looking imminent, they better speed up the process or risk losing additional money.

If your first buyer backs out, it could take longer.  For some people, this isn’t a bad thing provided the lender can postpone the trustee’s sale date, if the homeowner is late on their payments, extending out the time the homeowner lives for free.  Click here for an article on my recent experience with that.

Have questions about the short sale process or need a private short sale consultation?  Either call us or fill out the form below and I’ll get back to you promptly.

Thanks for visiting!  By the way..this is my 300th article!  Wow…I love blogging!

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This entry was posted on Wednesday, August 25th, 2010 at 11:00 am and is filed under Short Sale Information. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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