The Short Sale Process:
1. Contact a Short Sale professional (Short Sale Dale 612-284-8161).
When you meet with your Short Sale expert they will determine if you have a valid hardship and if you need to short sale. The market has been changing in certain areas and some homeowners actually can sell and some may need to bring money while others might just want to get out. One of the most common Hardship is a missed mortgage payment. Some Homeowners are doing what is called a strategic default where they could afford the home but know that it would take a long time for their home value (that may have been falsely inflated by the housing boom) to come back. We will cover Strategic default in another section.Other hardships would be loss of job, loss of renter, Credit abuse, and so on.
2. If you qualify for Hafa, then Dale may have you contact your bank and they will send you a packet and may have a person come to your house to have the value predetermined so that Dale can list the property at that price.
OR
If you don’t qualify for Hafa, Dale will then come and meet with you at the residence to take pictures of the property and collect what is called the hardship package. Every bank has different hardship package requirements. Most hardship packages will include two months bank statements, two months paystubs, hand written hardship letter, taxes statements from the last 2 years and their own finance form that shows you can’t afford to stay in your home.
3. Your home goes on the mls and other agents will show your home. Depending on if you want to stay in the home or move on at this point with your life will be up to you. Depending on where Dale prices the home there can be a lot of showings and that can be hard on you and your family. Since a short sale is a lengthy process you may want to stay, but emotionally it is sometimes better for homeowners to just move on to their new residence.
4. Purchase contract received on home is signed by you the seller and the buyer.
5. Contract goes into the bank.
6. Bank will send a Realtor or Appraiser out to do BPO (bank process outsourced aka an appraisal).
7. Bank takes value of property and offer and all other information and sends it the investor.
8. Investor approves or counters offer. Buyer can counter or walk at this time and then your home would have to go back on market.
9. Buyer completes home inspection and loan completed.
10. Closing at this point we are now anywhere between 3-24 months form step 1.
11. Depending on if the bank agreed to it or not you will receive a mortgage satisfaction from the county for the first and second.
12. Some second mortgage may pursue the homeowner if they agreed to the short sale but not to waive their right to collect on the balance. This is why Short sale Dale has partnered with Virtus Law so that his short sale clients will have options if this occurs.
If you have any questions or comments, please post below or contact me at the following :
Dale Frisch 612-284-8161 or Dale@AttractiveRealty.com
We are not lawyers or tax accountants and you should always seek the advice from a professional
regarding legal or tax questions.
For a Free legal consultation on Real estate matters, Short Sale/ Foreclosure or Bankruptcy
Contact Nathan Nelson with Virtus Law PLLC 763.432.2169 Or Info@virtuslaw.com
Click here to visit their website
Call 612.284.8161 or Email Dale@AttractiveRealty.com