Seller Short Sale Realities
Setting Realistic Expectations for EVERYONE involved!
Short Sales Take Time!
- The numerous parties, policies, negotiations and other factors involved in a short sale make it a time-consuming process.
- Short sale offers must be approved by several parties, including all investors, lien holders, and mortgage insurers.
- BE committed to completing the Short Sale process.
Deficiency Waiver or Not.
The unpaid balance owed to the lender is known as a deficiency. Our team of attorneys is successful in getting the deficiency waived; however, there are instances where in order to get the deficiency waived, the seller may have to bring money to the table or sign a promissory note for a portion of the difference. Remember, investors are being asked to forgive large sums of money that are legally owed to them, and have the right to request more than what’s being offered through the short sale.
Complete Requested Tasks Promptly
- When asked to submit documentation or respond to a request by the negotiator or short sale facilitator, please do so immediately. Most short sale tasks are time-sensitive and can delay or even halt the process. The short sale process cannot move forward until all required documents have been received and submitted.
- Financial Documents expire every 30 days, so EVERY 30 days, submit your updated Bank Statements and Paystubs.
Provide current Title Insurance Policy to assist in resolving any back title issues.
Work to Sell Property at Fair Market Value
- Accept the Highest and Best Offer. Investors hope to recoup as much of their investment as possible, so unreasonably low offers are more likely to be rejected.
- Valuations (appraisals, BPOs) expire and must be valid through closing. Some investors may require an updated valuation every 90 days.
Assist in getting Non-Mortgage Liens Released As Soon As Possible
- Disclose and resolve non-mortgage liens early in the process to prevent possible delays
- Be sure to keep Condo or HOA dues and Water Bills CURRENT as most investors will not pay the delinquent dues, bills or liens at settlement.
- Fully complete and accurately fill out Sales Contract with all appropriate Addendums signed, initialed and dated by both you and the Buyer (Sellers name must match what’s on the current Deed). All information must be consistent!
- Wet signatures are a MUST, NO electronic signatures.
Closing Costs and Fees Typically NOT Paid or severely reduced:
- HOA, Condo fees, liens, judgments – Keep Current – negotiate reductions before closing.
- Repairs and home warranties
- Escrow Fees (water, etc.)
- Delinquent Water Bills
- Closing Cost Credits are not always approved. Make sure the Buyer is prepared to settle WITHOUT closing help.
Cash Buyers or Not Really?
- Cash buyers are not given preferred treatment unless the Investor REQUIRES a cash buyer, because in most cases Investors are concerned with the loss, not the source of proceeds.
- Be sure CASH means Cash and NOT Hard Money or any other source. If it’s Hard Money, just say so! Hard Money Lenders often have down payment requirements and valuation requirements that could later kill the deal. Cash Buyers are expected to settle often times within 15 days of Short Sale Approval.
- Insist Buyer order the home inspection BEFORE short sale approval. If not, a lot of time could be wasted. Since short sale properties are typically sold As-Is, a thorough, professional inspection will give you important information about necessary repairs and the fair market value of the home.
The Foreclosure Process Works Parallel to the Short Sale process
- In most cases the foreclosure process continues during the short sale process
- Investor/State policies pertaining to foreclosure postponement can vary and change over time.
- Foreclosure sale date postponements are NOT guaranteed.
Why Choose C.M. O’Neal & Co. to Negotiate Your Short Sale?
Milestone Title’s Role in the Short Sale Process