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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Curt and Heather Reichstetter are the best! We relocated and had a extensive home search that lasted months, followed by an extremely difficult closing – with a seller’s agent who was not helping either. Curt was patient, professional, responsive and extremely helpful through the entire process. I would never recommend a different realtor in the Richmond market. Hands down the best there is.”
I am writing this in regards to the superior experience I had dealing with Ms. Lane in regards to selling not one but two of my properties. I first had the pleasure of working with April approximately eight years ago when my mother and I decided to sell the house we shared. Please understand, this was not easy for us as this house had been my grandfather’s and was therefore very personal to us. In addition, I had never gone through the process of selling any property and for my mother it ha…
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…
Dear Curt, Blake, and April; I just wanted to thank you for all the hard work. You guys did a great job managing the sale process and I couldn’t be more pleased with the result. The sale price and time to close both exceeded my expectation and I am sincerely appreciative. Should you ever need a referral from a former client, please don’t hesitate to reach out – you’ll receive a glowing review. Thanks again!
Beyond words of gratitude, the professionalism and trustworthy service this gentleman and his wife has shown towards me as a buyer of a home. I am overjoyed with satisfaction in buying my home because of Curt. Indeed a professional and highly recommend him to anyone in search of a home.
Chris, With your help we’re pretty much settled into our new place. Who’d have thought that in so short a time we’d be able to accomplish so much. You made the experience almost fun : methodical, efficient, very effective; and just what we wanted. You’re a magician!
Wonderful to work with Ali! I am a first time home buyer and Ali was amazing! She listened and was very attentive to detail. I couldn’t have asked for anyone better to aid me in the purchase of my very first home!
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!
Working with Dustin Hicks at [Explore Realty Group] was beyond awesome. Buying a home is the largest purchase most people make in a lifetime and even more so when its their first time buying, and having a realtor who cares about your needs, your wants and your budget is mandatory. Dustin and the team were incredible to work with. Dustin was patient and always made sure to give me his professional opinion and make sure to watch out for me in any way possible. I was a first time home buyer stressi…
April Lane, has worked diligently to keep me informed during the listing and sale of my Moms home. She made me feel very comfortable throughout the entire process. She went above and beyond to make sure my 95 year young mother was informed and fully understood all the details as well. Her house sold in two (2) days thanks to the great team work of Blake Poore and April. I would and have recommended this amazing team of Blake and April to friends and on social media to list and sell any ones hom…