WARNING:  If you use just any real estate agent to represent you as a Seller or Buyer of a Short Sale property, the odds are against you in getting the bank to accept an offer. Statistics show that nine out of ten listed short sale properties will NEVER be accepted by the lender and the property will end up in foreclosure after all. The problem often lies with the listing agent not knowing the proper way to package it for the bank to accept it.  If it's not packaged correctly, the lender has their hands tied and simply cannot accept it.  The property ends up going into foreclosure and ruins the sellers credit as well as losing them their home.  During the first half of 2008, agents were listing multiple properties and then blaming the lender because they weren't "aware" of the proper way to package the deal.  The foreclosure time period kept ticking away, and not only did the home seller lose out, but the lender lost out too, when it became a foreclosure.  The bank doesn't really want to own the property and pay all the legal costs that go with it.  The time it takes to get it listed again on the market and with a new agent means the lender is still not earning any interest, but instead incurring even more costs.  These agents were not really helping the home owners with their lack of expertise in how to package the short-sale deal for acceptance, they were hurting the home owner.  Just because an agent has several dozen or even several hundred listings, (and many do) does not mean they are foreclosure experts and certainly doesn't mean they are actually selling them all.  In fact, the statistics have shown that only 1 out of 10 Listings (10%) has been the national average of short-sales sold in comparison to the number of short sales listed for sale. How can this be considered helpful to the already distressed home seller? 

Understanding the Short Sale

SHORT-SALE means selling price is less than the amount owed.  

This is frustrating to many anxious buyers only because there are so many real estate agents who don't know how to package the deal right for the lender.  The buyers are strung along for many months and then 9 out of 10 listings aren't even sold, simply because the Listing agent doesn't understand what is needed to accomplish the sale.  Many Realtors representing their buyers have become frustrated and now are avoiding even showing these properties to buyers because they were made to wait and see for so many months and months and then nothing happens.   If you wish to pursue a short sale, you need a Short-sale 'Specialist' who is "Certified" and really does know how to accomplish this rather than just throwing some paperwork at the lender and hoping it sticks. 

In a SHORT-SALE, the Seller must pre-qualify for their Hardship by the lender. Several kinds of disasters may qualify them, such as losing their job or being injured or disabled with no way to repay their loan ever.  The Seller is trying to save themselves from going Bankrupt and in that way, preserving their credit, so it is to the Seller's advantage to cooperate in showing the property while they live there and usually are no longer making a payment. In order for the lender to net the most profit, they, too want to avoid foreclosure. If the deal makes sense in my presentation, then your offer will be accepted.  The lender always verifies the value by hiring an independant to do a BPO (Broker Price Opinion)  This BPO will confirm what the market price should be. The BPO only looks at the most recent sold homes within 2-3 months.  Since the Lender is going to take a loss, they must document why they have done so.  If you decide to go for a short-sale, you must have a little bit of patience; it will take a bit longer than a regular purchase.  

Sellers beware!  Distressed home sellers need to choose an agent who has the knowledge to correctly handle the short-sale packaging and then everybody wins.  The new buyer gets the deal without a long drawn out wait and the homeowner just saved their credit so that they can purchase another home when they are back on their feet and the bank saved a lot of legal fees.  I feel really good knowing I can help be a part of the solution in this crazy real estate market that we are in and help distressed homeowners make a wise decision to keep it with a loan mod, or sell it short quickly.  

Call now for your Free Consultation... don't wait... time is of esssence!

 

 

NOD means Notice of Default and this property is pre-foreclosure and the Owner may simply be late on their payment and not willing to sell it.  The owner has missed their payments and the amount listed only reflects the amount of payments they need to catch up in order to stop the property from going to Auction 90 days later.  This is a pre-foreclosure and not yet a foreclosure; the owner may still have time to do keep their home.  If you are that distressed borrower reading this, CALL ME RIGHT NOW, so I can help you avoid a foreclosure by saving your home with a loan modification

AUCTION is held before it actually becomes a bank owned property. You will need to give them a Cashier's Check in a sealed envelope with a contract offering and bring it to the Auction steps on the specified sale date.  An AUCTION opening bid amount is typically based on what is owed by the 1st Deed holder.  The 1st deed holder needs Cash... they won't wait for financing.  The holder of the 2nd Deed may try suing the borrower for thier amount owed, but the 2nd Deed holder may lose out completely on this type of sale. At an Auction, when your bid is the accepted bid, will take much less time than an REO or a short-sale.  It's always AS-IS and you usually don't even get a chance to hire and Inspector.  Some people think they can't buy at an Auction without a lot of cash, but if you are creative and pull the cash from an existing property or take out a short-term business loan or even a private-money loan in order to come up with the Cashier's Check, you can pay that back once a new loan is finalized through a bank or other lender. The key here is that first you must buy it and take Title.