The short sale process can be time consuming and difficult to maneuver. And because of that, many real estate agents avoid those transactions all together. We don't. We have completed numerous successful short sales, and we know what it takes to get the job done smoothly and stress free. The most important thing that we do that sets us apart, is COMMUNICATION! We will call all parties with weekly progress updates.
What do we do as the Agent during the Short Sale process:
- Review and negotiate several offers.
- Assist the party to obtain the best possible offer.
- Gather personal and financial information.
- Prepare the short sale package. - Submit the short sale package.
- Give a Broker Price Opinion (BPO).
- Challenge the appraisal if needed.
- Submit supporting documentation in order to have the value approved.
- Update the information to the lender and the parties.
- Negotiate the Counter offers with the buyers and sellers.
- Negotiate the new offer with the lender.
- Explain the process to the buyers and their Agents and follow up with both.
- Assist the seller in addressing their credit situation due to the Short Sale.
- Go over with the seller the different offers that the lender may have to offer.
- Negotiate with all lienholders in title to reach a reasonable settlement
- Other Services may include Credit Restoration, Deed in Lieu of Foreclosure, Loan Modification and alike.
FAQ’s for Short Sales:
- How long does the Short Sale process take?
The average Short Sale will take 60-90 days from the date the offer is presented to the lender to the date of the Short Sale approval. Many phone calls, emails, and faxes back and forth between the lender and our team are required in order to push this through to completion. Once a Short Sale approval has been received from the bank, the Buyer must close and settle within 25 days.
- How much is owed against the house?
This is private information between the bank and the Lender and will not be disclosed. Please know the bank is only concerned with two things:
(1) Market Value of the Property (2) Amount of the Offer
Banks do not make their decision based on how much money they are losing. When a bank takes over a home through foreclosure, they do not turn around and try to sell that property for the amount they were owed, they sell it for what its current market value is.
- Is there a Foreclosure sale date scheduled?
Foreclosure sale date information is public information. We will work to get the foreclosure sale dates extended or postponed, so please do not let a foreclosure sale date scare you away from making an offer on this listing. The bank would much rather Short Sale the home than Foreclose on it- we promise.
- When will my offer be presented to the Seller?
We present all offers to our Sellers Monday through Friday between the hours of 8 AM – 5 PM. We will not present an offer for a Short Sale outside of normal business hours as we will need to submit it to the bank after the Sellers have signed off and they are only open during normal business hours.
If you would like an update on your offer please email Team@RoundTableRe.com.
- How do you know the bank will accept our offer?
We don’t; however, we will submit it and what we do know about Banks is that they will most likely accept an offer that is at or very near current market value. We price all of our listings well so if your offer is at or very near market value, we can say confidently that we will get the Short Sale done.
- Why do you “only” pay 2% commission to Buyer’s Brokers?
We will always pay the commission advertised in the MLS and that will never be negotiated away from the Buyer Agents side of the transaction.
All short sale lenders do not pay 6% commission. While Fannie Mae and Freddie Mac have acknowledged they will pay 6% commission, there are still many lenders today that will not pay more than 4% or 5%. We only pay 2% because we’re compensating ourselves for doing all the work involved in getting a short sale approved. There are times however where we make less and that is because in order to get the deal done we needed to take less while always giving the Buyers Agent 2%.
- Our Communication Process
Once your offer is accepted, you will receive an update when we have one. If you are in need of an update and we have not properly given you one please reach out to Team@RoundTableRe.com.
- Terms the Buyer Must Agree To
The Buyer on a Short Sale Listing must agree to the following terms:
The Buyer’s initial deposit should be $2,000 or more. Earnest money to be held by Keller Williams and this earnest money is non-refundable for 90 days (the average amount of time it takes us to get a Short Sale approved).
The buyer must pay for a home warranty should they want one – the Seller and the Seller’s bank will not pay for this cost.
The home is being sold, as-is. The Seller and/or Lender will not make repairs. The buyer can certainly perform any inspections he/she wishes. We recommend that inspections be done quickly so as not to waste 90 days waiting only to find an inspection issue that stops the deal from closing.
No personal property will be included in the sale, that is not expressly listed in the MLS.
Buyer shall proceed to closing within 25 days from issue of the Agreement Notice (notice from Seller and Seller’s agent that the Short Sale has been approved by Seller’s bank)
We understand that many mortgage brokers cannot close a loan in the current mortgage market in 30 days. Please plan ahead and have all mortgage contingencies removed within the 1st 60 days of the agreement of sale. Please notify us up front if this is an issue for your Buyer as we have several recommendations we can make to meet this deadline.
Seller’s lender shall pay for all Home Owners Association fees (liens, etc), with the exception of the Transfer Fee. The Transfer Fee (or capital contribution fee), if any, is to be paid by the Buyer.