What Should I Expect When I Sell?

A short sale often presents a good option for homeowners who are in danger of foreclosure or in default because of documented financial hardship.
The benefits of a short sale include:

1. A less severe hit to your credit history than what you'd experience with a foreclosure.

2. You continue to live in your house until the sale takes place.

3. In some cases, banks are offering homeowners cash incentives to do a short sale (to help with sales and moving expenses).
Because your credit history won't take as long to recover with a short sale as it would with a foreclosure – an average of two years versus seven years – the short sale option is great for sellers who want to own a home again in the near future.
Has your bank already contacted you?
Some banks have launched programs to prequalify homeowners for short sales. Through their records and housing data, they identify borrowers on their books who are in negative-equity situations. In this case, some are reaching out to borrowers in an attempt to further streamline the short sale process.
This makes it much easier for you, the seller, to proceed with a short sale.

Compiling your short sale package

Short sales require different paperwork than a normal home sale. In some instances, as mentioned above, your bank may have already qualified you for a short sale. In other cases, you and your agent will need to submit certain paperwork to your lender.
Your lender then decides whether or not to approve your request for a short sale.

Just what goes in a short sale package? Each lender is different, but in general, you will need:




 

 HUD-1 or preliminary net sheet

 Completed financial statement

 Letter of authorization to let your agent speak to the bank

 Letter that explains your financial hardship

 Two years of tax returns

 Two years of W-2s

 Last two months of bank statements

 Recent payroll stubs or other proof of income

 Comparative market analysis or list of recent comparable sales
Keep in mind that banks' processes vary, and the above list is a general representation of what many will want to see.

New federal guidelines shorten the wait

  

 

In the past, the notoriously long waiting game for short sales deterred many buyers from attempting them.
But times have changed. Many banks have streamlined the process and removed the barriers that have hamstrung short sales in the past. Some are even prequalifying borrowers to get the ball rolling faster.
In addition, federal guidelines have helped shorten the wait for mortgages owned by Fannie Mae and Freddie Mac. These are great changes for buyers and sellers, because it means there are regulations in place to help shorten the process.

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Greg Sheeler

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Matt Lippon

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Beware the (I'll get your home sold in a week) agent

The "Real" Estate Blog

I hear this one all the time from prospects looking to list their house. "Well, agent xyz told us that if we listed with her, she'd have it sold in a week." This would fall into the category of "If it sounds too good to be true, the probably is." The majority of agents are not going to make this claim, but rather will give you an honest market analysis, inform you as to how weak or strong the market is, especially the market in which your home resides, and present the objective facts. A good agent will then lay out an effective marketing plan, where the majority of the focus should be on "online marketing". Be careful to not get caught up in empty promises, reduced commissions, and being talked in to lowering your price below market value (unless you must have a quick sale). The key to choosing a good listing agent is to objectively determine who is going to provide you the best opportunity to sell your home. Will your listing agent also aggressively work to find buyers, or will they just list your home and wait for another agent to do the work.

Beware the (I'll get your home sold in a week) agent in The

Winther Stave & Co

Spencer

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Spencer Golf & Country Club, established in 1919, is a Semi-Private Golf Club featuring its well manicured 18 hole championship golf course and full service restaurant experience. Outstanding membership rates are available to residents, non-residents, and corporations. If a membership isn't right for your needs, non-residents of Spencer are welcome to play anytime that the course is available, as often as you would like. If you are looking to host a corporate outing, organization fundraiser outing, or group golf outing, look no further than Spencer Golf & Country Club. We can accommodate groups as big as 200 golfers and more with all the professional golf tournament services. The Country Club is also an excellent choice for your next business meeting, banquet, or wedding reception.

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