SHORT SALE – HOW DO I GET STARTED?

LISTING YOUR PROPERTY:  The first step in the Short Sale Process is the Listing Interview in which we will discuss the Short Sale Process and go forward with putting your property on the market to obtain an offer.

Visit:  Short Sale Flow Chart (just click image)

PRICING YOUR PROPERTY

The Seller will be provided with a current CMA (Competitive Market Analysis).  The Seller will determine the price to market their home keeping in mind that most successful lender approved Short Sales will sell and close at approximate current market value.

PREPARING YOUR PROPERTY TO BE MARKETED

1. Entering your property into the MLS
2. Yard Sign
3. Lockbox
4. Open Houses (upon request)
5. Local Advertising
6. Extensive Internet Marketing Campaign

Visit: http://pattyhylandersellerservices.wordpress.com/

OBTAINING DOCUMENTATION FOR THE LENDER

During the time that we are marketing your property it is best to begin obtaining all of the necessary documentation required by most banks.  When an offer is received and accepted the Short Sale Process is ready to begin.  The majority of lenders will require the following:

• Letter of Authorization (allowing realtor to discuss your loan)
• Hardship Letter
• Financial Worksheet
• Past 2 Years Tax Returns
• Past 2 Months Pay Stubs

OFFER

At this time we will be negotiating the best possible offer to take to the lender(s) as well as verifying Buyer qualifications with loan (pre-approval letter) or cash (funds to close).

ACCEPTED OFFER

1. Escrow will be opened at a title company.
2. Lender(s) will be notified of an accepted offer.
3. Documentation will be provided to lender(s) to begin the Short Sale Process.  Note: There are some banks and some circumstances in which lenders will begin the Short Sale Process prior to having an accepted offer on the property.

THE SHORT SALE PROCESS TIME CLOCK BEGINS

At this time the bank will be reviewing the Seller’s financials as well as the accepted offer. I will be communicating with you, your lender(s) and the buyer’s agent keeping all parties fully informed of all updates.

SHORT SALE APPROVAL FROM LENDER(S)

At this time you will receive a Short Sale Approval from your lender(s) advising of the terms of the approval.  It is recommended that you seek legal and tax advice to understand the terms of the Short Sale Approval(s) and the possible legal issues and tax consequences.  In the event that there are two lender(s) involved, a Short Sale Approval letter will be required from both lenders with both lenders agreeing to the terms of both Short Sale Approvals.

BUYER’S DUE DILIGENCE BEGINS

During this time the buyer and their agent will have the oppurtunity to review and approve all of the Seller’s Disclosures, Homeowner’s Association documents, verifying clear title, having the property inspected, etc.

A.  Unlike many transactions in the past the Buyer’s Due Diligence period does not begin until the Short Sale letter(s) have been received and approved by the Seller.  At that time the Buyer’s Due Diligence begins, and if there are no issues all parties go forward to a successful closing.

B.  Again unlike many transactions, with a Short Sale transaction two appraisals will be necessary (in the event the Buyer is obtaining a loan).  One is ordered by the lender, that is liquidating the property and the other one is ordered by the lender representing the Buyer.  In the event that the appraisals are consistent in value, all parties may go forward to a successful closing.

SUCCESSFUL CLOSING

Short sales in the Las Vegas Valley are closing at a faster rate, however still may be a long and complicated process anywhere from 30 days to 6 months.  As your Listing Agent, I will be there during the entire transaction to answer your questions and keep you informed as we take the Short Sale Process “One Step At A Time”.