What is a Short Sale? Selling your home can be easy. Let our experienced staff help you make it happen.
A Short Sale is the sale of real estate where the borrower will be short of the balance owed on the debts/liens secured on the property. It is the Loss Mitigation Department within the creditors that will evaluate the borrower’s ability if they can qualify for the short sale process. This special department has a set criteria that the borrower must meet in order for the lien holder/ lender to accept less than the amount owed for the debt.
- What items are usually needed to start the process?
- What other factors effect the process?
- Appraisals / BPO / BOV
What items are usually needed to start the process? *
- Financial Hardship Letter describing why you, the borrower, has become in default
- 3rd-party Authorization Letter with your signature (required for your REALTOR® to negotiate and help you in the process of the short sale)
- Last 2 years of Tax Returns (or they may have you sign a 4506-T form that allows them to acquire the transcripts of your tax returns)
- Last 60 days of Bank Statements (checking and savings)
- Last 30 days of Paystubs (if you have become unemployed it’s a good idea to write and sign a separate document to include in the income section)
* Note: Some lien holders have their own financial packages that you must complete in detail regarding your financials.
This can be a very long process and will be subject to many levels/department(s) in the approval process, so be patient! After time elapses on the original information submitted, the lien holder may also ask for the same documents to be updated while your file is being processed.
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What other factors effect the process?
If you have a 2nd mortgage, HELOC (Home Equity Line of Credit), Home Owners Association dues, and/or special assessment judgment, this can also effect the short sale process and you will be required obtain short sale approval from those lender/creditor(s) as well. If the property is sold for less than the borrowers note, this is known as a deficiency. Depending on the type of loan, the creditor may have the option to place a claim on the borrower for the deficiency, known as a Deficiency Judgment, which allows the creditor/lender(s) to attempt recouping their losses on the note(s).
Part of the process will include the lender/creditor(s) to determine the current market value of the property by obtaining an independent evaluation of the property, known as an appraisal. In some cases it is known as a Broker’s Price Opinion (BPO), or a Broker Opinion of Value (BOV).
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Appraisals / BPO / BOV
Every property is different from the next and, to be fair, a personal evaluation of each helps the creditor/lender determine the true value of the property. The appraiser is a 3rd party that has an unbiased opinion. Some factors that contribute to the assessment are the following:
- Location of the property
- Square footage, number of bedrooms and bathrooms
- Condition of the property
- Quality of finishes throughout home
- Age of home
Again, each property is unique, none are the same. The most important aspect is having a REALTOR® that knows and understands how this process works so that you can be successful!
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Have more questions? We’re here to help!
Curt helped us buy and sell our homes. He made it all happen and advised us every step of the way. And it was great advice too. He worked through all of the inevitable issues with us. He was supported by April Lane who was also great and advocated for us. A very pleasant experience. And we strongly recommend the team including Blake Poore, April and Curt.
April Lane is an excellent real estate agent. We were referred to her to purchase our new home. She utilized her extensive knowledge of the area to create our home search with a well laid out plan in relation to our hotel. We came from 7 hours out of town, and April ensured our search was a painless one. April’s experience came into play with our negotiating as well. We were placed in our new home with instant equity. She also continued her service throughout the closing and ensured that we un…
April worked with me and another realtor during my recent home purchase. April was a huge help- she was always on top of her email, patient with my questions, and eager to help out- for example she followed up exhaustively with the seller’s agent and lawyers to help get the best rate on my title insurance. You won’t regret working with her!
There are a few words that greatly describe [April] Lane & our selling experience. Great Communication with all details, none were too small! Awesome Effort with all matters concerning our home, the new buyers & our future. Trust & Honesty, especially since our selling process was done mostly from afar. She had quick responses, met deadlines & gave helpful advice. We couldn’t be more grateful!
I was recently fortunate enough to be assisted by April Lane in the purchase and closing of an investment property. April was with me every step of the way, from suggesting potential properties, all the way through signing the last document at closing. April understood that I wanted to move quickly as property values were quickly rebounding in my area, and she used her experience and relationships within the Realtor community to help me quickly secure a home. Not only did April show me severa…
We appreciate April’s attentiveness, knowledge and dedication during the recent sale of my mom’s home. The home brought a full price offer, which was a great relief to my mom. April kept us informed of where we were in the process at all times. Though the buyer was unrepresented, April went above and beyond in communicating with the buyer. Though the process wasn’t necessarily seamless behind the scenes, April worked tirelessly on my mom’s behalf, making sure every “i” was dotted and every “t” w…
My experience with the fine agents Joyner Fine Properties has been a wonderful experience each deal we close. I got all the documentation in a timely manner, in times of uncertainly I was provided expect guidance and advice on how to proceed. Moreover, when things stalled; Mr. Raimo remained patient and resolute until the deal was closed. I’d gladly recommend Joyner to my friends and family and have full faith and trust they will be taken care of.”
Many thanks go out to Curt for his help in my extensive property search. I was very picky and cheap. He remained patient throughout the process and exercised concern when he felt something was amiss or if he truly felt a certain property was not for me. He often thought of me first when previewing certain properties due to his preparation and extensive knowledge of what I was looking for in a house.
I couldn’t have asked for a better selling experience with Curt. I sold my home only 12 hours after putting it on the market and ended up with an offer that was higher than asking price. I recommend Curt to anyone buying or selling in Richmond!
Working with Poore, Reichstetter & Associates [Explore Realty Group], Joyner Fine Properties was really a great experience for my husband and I when looking to relocate to Richmond from Ohio. We were a little unsure about being able to find the right fit in an agent to work with as we were long distance, but after meeting with Blake Poore for the first time, our minds were at ease. He took us on a marathon house hunt the first day (per our request) since we had limited time in town, and we wer…