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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To Blake, Curt and April: Moving is never easy. Relocating with a young child and pets while also being pregnant is definitely not easy! I must thank all of you for recognizing that our move was about more than just you selling our house. Throughout the entire selling process, I felt that all of you understood and empathized with the difficult transition we were making, and that you were willing to help ease that transition in any way that you could. From the start, we were impressed that…
Blake & April were with me every step of the way & made the process simple. Their knowledge of the market is great & were a pleasure to work with. I would have spent much more without their ideas & input!
Curt Reichstetter recently helped us to buy a very unique historic property. The deal was extremely complex due to the innumerable eccentricities of the property. Curt’s tireless persistence and attention to detail helped us to successfully leap various hurdles and make this purchase possible. He spent many, countless hours working on the deal for us and visited the property dozens of times to help us to gain access for contractors, inspectors, historians and to help answer our own questions. Ev…
We had our share of ups and downs selling our property, and April [Lane] was right there with us every step of the way with expert advice and immediate responses to our questions and concerns. April is a wealth of information and it has been a pleasure to work with her; I would definitely enlist her services again.
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.
Justin helped me navigate the stressful period of buying and selling a home on a quick turnaround. He is always available to answer questions and helps resolve difficult issues on short notice. He also is very knowledge of current market conditions and trends in all of RVA’s unique neighborhoods. I highly recommend his services.
They helped me get a house, when I doubted that I’d even qualify for a mortgage to begin with; Curt was great!
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!
April, Curt and Blake with Joyner Fine Properties has had a paragon of patience through our search for finding land to build new houses on. Considering, we did not always know exactly what we wanted. If there was a better rating than “A”, this group would get it. They are instrumental in helping find what it is that we are looking for. They are always so quick to respond and always present fantastic options to us. It is a pleasure having Joyner and their agents represent us and can always say ou…
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…