Should I mess with a Short Sale?

Market Conditions:

There are 3 types of sales in today’s market, Short Pays (SP), Bank Owned (REO) and Standard Sales (ST).

The Short Pay is owned by the seller, the property is worth less than is the mortgage and the terms of the sale must be approved by the mortgage holder. Typically SP listings are initially priced 10 to as much as 30% below comparable sales from the previous 3 months within the neighborhood of subject property. This to entice and encourage offers to purchase. When price and terms are negotiated then approved by the mortgage holder the sale price is usually close to comparable sales from the previous 3 months. Approximately half of today’s listings are SP listings and can average 30 to 60 days and as much as 120 days to negotiate and close with the seller and the respective lender.

Next… What are the steps to successfully selling a Short Pay home?

1. Objective:
a. Indentify Seller’s wants and needs
b. Create moving cost for Seller
c. Save credit from reflecting “Foreclosure”
d. Seller peace of mind
e. Help Seller be where they want to be
2. Market Survey
3. Broker Price Opinion
4. List property
5. Seller consultation with attorney to determine if a Loan Modification is applicable or recommend the Short Pay avenue
6. Package Seller financials for Lender (Include POA and Letter of Authorization)
7. Sell property and open escrow
8. Provide full list, sell and financial package to Lender
9. Negotiate sale and close escrow with mortgage holder

I am very excited and look forward to providing my professional real estate broker services to you and your family. Please call or email me with any questions.

Regards,

Lloyd Mize - Broker
Member of Pacific Coast Realty Group
951-302-7996 HarvestTeam.com
lloyd@HarvestTeam.com