A properties market value is what someone is willing to pay for it. The price should always reflect the condition of the property. In the initial offering all needed repairs should be noted and deducted from the Property Valuation Analysis. All factors should play into the end value, time on the market, recent sales, condition of property, area and more.

If an automated system doesn’t accurately reflect your properties value – don’t use an AVM in the submittal package. Come up with another way to justify your offer.

Lenders will work within a variance of the lender BPO or value they arrived at. But the reality is it wouldn’t be a short sale if the seller didn’t owe more than what they can sell the house for = Market Value.

If a legitimate short sale is requested due to hardship or transfer, the banks are very willing to work with individuals to negotiate a fair price in a timely fashion. It will always be difficult if someone is trying to short sell for a ridiculous sale price and/or is just trying to bail out of a property for no other reason than its declined value.

Yes, a HUD1 or settlement statement will need to be provided, preferably with the initial request. However, there are banks that will start the process and request this item in a later phase.

Depending on which bank you are trying to work with, you will have different timelines and stages. Let’s take B of A, for example; they have been busy acquiring other banks and lending institutions, making them a little stressed in all areas of customer service. Therefore, it should be assumed that it will take months to get an approval. That doesn’t make their process more difficult than any other bank’s; it only means that their customers need to be a little more patient. I have, however, succeeded in receiving approval in three months with B of A, and I just received a short sale approval from GMAC in three weeks.

With regards to hanging on to a buyer through a process that could take three weeks to three months, the key is simply clear and concise communication. When you accept an offer, you should take into consideration the other agents involved and their practices. Regular updates also help. It is in the best interest of an agent closing short sales to be 100% prepared prior to listing the property. The seller’s package should be put together and, hopefully, the pre-approval process started. This will also cut down on the timeline a buyer will encounter, hopefully making the entire process feel seamless to everyone involved.

The banks will allow a switch of contracts/buyers during the process if for some reason your initial buyer does walk. So, that being said, never stop working the property, and always have back-up buyers in place.

There are plenty of horrors stories, and unfortunately, more often than not, these are the topics about which blogs are written. It’s more fun to complain, I guess. But, if you ask around or search for the positive stories, you can actually learn a lot and find that there are quite a few successful short sales taking place.

Elaine
Chambers Realty Group
Short sale specialists
Serving Mohave County Arizona