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 was a joy to work with. He was always available and helpful. He steered me away from things he should have and ultimately helped me find the perfect house!
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!
Curt, Heather and the Joyner team are world class. This is our 3rd home purchase, and far and away y’all are the best realtor’s with whom I’ve worked. Great service from start to finish.
As a first time home buyer, I was initially pretty intimidated and nervous about the whole process. Thankfully Blake, Curt, and April were incredibly accommodating and helpful from start to finish. I never felt as though I was being rushed to make a decision and was grateful that my vision for what I wanted of my first home was respected and taken into account. They were always available to answer any question I had, even after closing when I didn’t know who else to ask. I cannot say enough awes…
April Lane is one of the best realtors we have ever had the pleasure of working with on the sale of our home. She handled everything from start to finish in a responsible manner. She has the knowledge from the sellers point of view as well as the buyers point of view. A caring, friendly realtor ready to lend a hand in any way she can to CLOSE the Deal! Highly recommend her and her firm!
I had the pleasure of using Joyner Fine Properties to assist in the sale of a unique Midlothian based condominium with substantially above market HOA fees. Curt and Blake set expectations during and following our initial consultation regarding the effort and patience needed to sell the property. The firm did a good job of putting the property out on the internet and other listing sites. I received automated reports weekly regarding views, contacts, etc. I received very timely feedback …
Curt helped us to purchase our sixth property and he is by far the best realtor we have ever used. He was extremely knowledgeable about the properties he showed us as well as informative about the area. Curt was very responsive to questions we had and was a pleasure to work with. He went above and beyond what we expected from an agent, even helping us to get settled in long after the closing. We highly recommend Curt to anyone and would certainly call on him in the future.
Good afternoon April & Justin! I wanted to take a brief moment to put together a message to send our most heartfelt thank you to the entire crew. Having been at closing this morning, I looked over at Justin and exchanged a chuckle with him as we were signing document; I was simply blown away by how at the concluding moment of this process, there was never a moment that felt overwhelming, unachievable, nor even difficult. I know there was a huge contribution from you all in your respective …
We listed our house this spring with Blake Poore, and April worked with us as a part of his team coordinating paperwork between the buyers and us. She also would have scheduled and coordinated showings – if we wouldn’t have gotten a full price offer the night of our open house! This entire team is honestly so great, but especially April. She’s wonderful at explaining things in a way that the average person (who knows nothing about real estate!) will understand. She always got back to me really …
They helped me get a house, when I doubted that I’d even qualify for a mortgage to begin with; Curt was great!