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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Working with Blake and Curt during our real estate transaction was extremely smooth. They were able to establish an accurate price and implement a successful sales strategy that garnered that price at the end of the day. I would love to work with them again on a future deal. The icing on the cake was that the professional appraisal came back within $1000.00 of their initial price analysis. I am relatively new to Richmond, and one of my biggest pet peeves is that people down here don’t answer…
Dear Blake and April, I can’t thank you both enough for all the hard and speedy work you both did in helping me and my ex-husband sell our former house in Kingsley. As you may know, we both spoke with several realtors over the past six months, and even last year. When I met Blake in 2013, I was impressed with his acute knowledge of the actual selling prices, days on market, asking vs. selling ratios, etc. for homes in my neighborhood, and my zip code. Of course, I came to find out that …
As a first-time purchaser, Joyner Fine Properties expertly de-mystified the home buying process from beginning to end. Their attention to detail ensured all my concerns were addressed in a timely fashion. Just as importantly, they were friendly to work with and made searching for my new home as enjoyable as possible. I highly recommend Joyner for your future real estate needs – I know I’ll use them for mine!
We couldn’t be happier with our home or the entire process! Justin from day one was personable, intelligent about the market and considerate of our time and truly listened to our wants and needs for our first home. Along the way he introduced us to a stellar team of mortgage specialists, home inspectors and countless other people that made this journey for us very painless and memorable. Both my fiancé and I would recommend the entire Joyner Fine Properties Team to any or our friends and family…
April is professional yet caring, she help me through the process of buying and then selling a home explaining everything in a way that was easy to understand so that I could be the one making the decisions.
With Blake’s knowledge and expertise of the RVA real estate market, we had a full price offer on our home THE SAME NIGHT as our open house – he’s that good! Blake helped us buy our house five years ago (and we had a great experience with him then), so we knew just who to call when the time came for us to list it this spring. This guy really knows his stuff in every aspect of selling a house. He came to our meetings prepared with spreadsheets of area comps and prices. He even walked the hous…
April Lane is a fantastic Realtor. She truly looks out for her buyers and spends countless hours finding just the right house. She gets to know what you really want and educates you through the entire process. She is a true professional.
As the months have passed since the closing, we are now able to reflect upon the quality and assurance that Blake and his team provided. He more than adequately assessed with expertise the house, the neighborhood and the market to put us on a winning path. But the most important trait was his continual contact to keep us informed of the status. We would recommend Blake to anyone as a guide through the maze of selling a house. In fact, we already have recommended him. Enough cannot be written …
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…
If you are on the fence about who to choose as your realtor, stop right here! Curt and Heather were so amazing when it came to handling our affairs buying our first home. They were a quick phone call, text or email away any time we needed them. Jesse and I couldn’t of asked for a better experience or realtors!