Short Sale Process

Short Sale Process

Certified Short Sale Professional

 

Most lenders are very motivated not to foreclose on your property.  Some of the reasons being: legal costs, freezing up their funds, lowering their performance rating with the government and other motivating factors.

One of the homeowners biggest advantage is not having a foreclosure on their credit.  A foreclosure on your credit could keep you from qualifying for a mortgage for as long as seven to ten years. 

We have helped many home owners avoid foreclosure with the short sale process.  In one case the home owner qualified for a mortgage and purchased a new home approximately one year later.

If you are in a situation where you owe more than what your home is worth or if you need to sell but don't have the money for the difference at closing, this may well be the most important article/letter you'll read about selling your home.  You need to look at the option of short selling your home.

When thinking about short sales, you have to keep one thing in mind: it is a very difficult transaction process that can easily cause more harm than good if not performed properly.  This is why your choice in real estate agents may be the single most important factor determining whether the process is successful or not due to the complexities and sheer volume of issues that arise.

This is not a task to be undertaken by just any real estate agent.  As a Certified Short-Sale Professional, CSP, I have been trained to navigate through the requirements that need to be met to get all parties to agree to the short sale.  Finding a buyer is only half the battle.  Once we have an able and willing buyer we must convince the lender(s) that they should grant you a short sale.

What you should expect during the process?

1.  Calculate the value of your property.  This will be accomplished by preparing a CMA and looking at the competition in your area and the condition of those homes.  We will need to price and position your home so that it sells quickly and at a high enough price so the lender will agree to the terms.

2.  Calculate your home's financial position.  In this step we will examine the value from step 1 and compare this to the mortgages and other debt that is supported by the home value.  If your home value is significantly less than your debt tied to the property you are a candidate for a short sale. 

3.  We will start searching for a buyer, especially one that has expressed interest in buying short sale properties.  Not every buyer will want your property given the status and tenuous nature of a short sale.  The buyer must be willing to deal with extended deadlines and additional demands made by your lender.  Your lender is the key to a successful short sale transaction and we will need them to feel confident in the new buyer.

4.  We'll need to contact your lender and explain your situation.  Lenders are under no obligation to accept a short sale and the terms will be examined closely by the lender.  The lender is the ultimate decision maker and must give final approval for short selling your home.  Lenders may disapprove of any aspect of the transaction without reason or justification.  Lenders do not have to be reasonable.

5.  There may be tax repercussions in enacting a short sale transaction.  Part of the process we will cover is the tax liability that may remain after the short sale transaction is complete.  As with any tax related matter we will advise you to seek counsel from a tax professional or tax attorney.

Summary

As a Certified Short-Sale Professional I can handle the challenge of short selling your property and prevent you from succumbing to the many pitfalls that can beset those who are not familiar with the process.  Thank you for putting your trust in me during this difficult period. 

If interested in finding out more about avoiding a foreclosure with the short sale process please contact us.

Here are a few of the things you will need:

Authorization to Release Information
Financial Worksheet
Hardship Letter
Two Years of Tax Returns
Two Current Bank Statements
Two Most Current Paystubs

 

Contact Information

Photo of Hickinbotham Real Estate Team Real Estate
Hickinbotham Real Estate Team
Scott Hickinbotham
862 S. Outer Rd.
St. Clair MO 63077
Scott: (636) 399-2296
Office: (636) 629-3419
Fax: 636-629-4462