Short Sales

One of the largest sources of my properties that I market come from my short sales.  As a real estate broker I have been doing short sales for about 3 years now and they are responsible for a few grays hairs.  Short sales are challenging to say the least.

Not being one to back down from a challenge though, I wanted to find a better way for buyers to buy short sales and help sellers avoid foreclosures.   Now I have the solution.  Here is what happens when a homeowner calls me who is behind on payments.

1. I arrange a meeting with the homeowner and find out what all has been done to that point.  I always want to make sure the homeowner has discussed loan modification options with the lender and feels they have exhausted all their options.  I make sure they understand the ramifications of the short sale and advise them to speak to a CPA and/or attorney.  In most cases it does turn out to be the best option, but not always.
2. I immediately bring them a cash buyer who can submit a good offer to the bank.  By good, I mean a solid cash buyer who will not flake out.  (Buyers flaking out on short sales is a major source of the headaches with short sales). There is nothing worse than spending hours working with the bank and getting an approval only to have the buyer withdraw because they found another house.  It does not make the bank very happy either.
3. My team is negotiating about 80 – 100 files at any given time and that is all they do.  For that reason they have really learned the ropes and have developed some relationships with lenders….very helpful.  Especially when you build a solid reputation with the lenders as having buyers who really close and fund.
4. If the lender will not accept the investor cash offer, then I can start marketing that property to other buyers. Why is that good for you? Because I have cut the time line for lender acceptance by weeks or months.  The bank has already reviewed the homeowners financial documents, established a value and know what they want out of that property.  That is great information for the next buyer.
5. If my investor does purchase the property, many times he has negotiated a great deal and can pass on a great deal to the next buyer – those are cool too!

At the end of the day though, the homeowner has had minimal stress from the short sale as I don’t have to put the house on lockbox for weeks to months waiting for a good buyer.  The cash investor will either close or help facilitate getting me the crucial information I need to get a new buyer.  Buyers get a good deal and sellers avoid foreclosure.

This is why I have a new love for short sales.  If you are a homeowner facing foreclosure, click here to fill out our contact form if you would like to be contacted.  I would love to help!

~Kim