Posts Tagged ‘selling short sale southeast michigan’

Oakland and Lapeer County short sales- the basics from the sellers perspective.

I recently wrote a post about the decision to short sell- or not. And between that post and this one is an article about the changes in penalties regarding future mortgages once one has gone through a foreclosure.

I intend this post to cover the basics of what is a short sale, how the process works, basic marketing of a short sale listing. Future posts will cover everything that is in this post in more detail.

What is a short sale? Basically a short sale is when the seller owes more than the house can sell for and is unable or unwilling to bring the difference to the closing. In those instances the seller is asking the bank to reduce the mortgage payoff in order to produce clean title at the closing.

Once the decision is made to sell, I like to list the price a tad bit high and reduce every 10 days or 2 weeks until we get a buyer. The strength of the buyer is more important than the price– but that will be covered in the next couple days. For now I want to address price. It doesn’t matter to you in the long run what it sells for. But price is still somewhat important. It needs to be somewhat fair- something we can get the bank to accept. But still needs to be a good bargain for the buyer who is going to wait around 3-6 months waiting for us to get the short sale approved.

Back up a few steps! At the time of listing I will give you a list of what we will need to submit to the lien holders when we get an acceptable offer. In the past I used an attorney to submit your financial information and hardship letter and to negotiate the short sale. I felt an attorney should be able to get better results. I was wrong. I have had better results with the short sales I’ve handled myself.

So now I utilize First American Title to submit your financials, hardship letter and purchase agreement. I use them to follow up until we get a human being to deal with and at that point I take over.

When we submit the offer we will need more information from you than you will probably be comfortable with. But it is required if you want the short sale. The bank(s) are going to ask for just about anything they can think of short of a urine sample and a DNA swab (just give them time!).

Once everything is submitted we sit and wait. Depending on the bank we could get a negotiator right away (not likely) or we might have to wait a couple months before there is an actual human being for me to start working with.

I will negotiate the best I can with all lien holders and go over your options. The goal is to get an accepted short sale that relieves you from future liability for the deficiency. That is why the purchase agreements we accept on my listings are subject to lien holder and seller approval of the short sale. Once we come to terms, you may want to take the approval letter(s) to an attorney for review.

Then at this point we move on to closing. Again- this is very very basic.

Future posts will cover:

  • if price isn’t important then what do I negotiate for?
  • tax ramifications
  • negotiating tips
  • what to look for in a buyer
  • what is a hardship?

For an appointment to meet in person to discuss selling your home, whether or not it’s a short sale, please contact:

Jackie Hawley
Keller Williams Realty
cell: 248-736-6407

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