What You Need to do a Short Sale!
We are all seeing the commercials in Massachusetts lately that say " Short Sale is the way to go"Â No commissions, No Closing Costs.Â Are these guys serious?Â Not everyone can do a short sale and yes, you need money to close these deals.Â Everyone gets to share in the pain.
You need to understand that the bank isn't the only entity involved in your short sale.Â There are investors, MI Companies, 2nd lien holders.Â All these people get a say in whether your short sale gets approved.Â Â Many of these entities want promissory notes, they are tired of taking the full hit.Â However, I digress.. the rest is for my client meetings.
First and foremost besides PATIENCE.. you will need:
1.Â Hardship Letter-Â This means a divorce, job loss and medical, NOT my investment isn't worth it anymore and I want out.Â You won't get approved.
2.Â Tons of Documentation-Â You need financial statements, bank statements, 401K statements, etc.Â If you don't want to provide them because it's your business...Then just give them a deed in lieu.- Don't waste anyone's time.
3.Â Money-Â You need to make sure your utilities and water bills are paid.Â You may need money to cover attorney fees and seller closing costs such as discharge fees, recording fees etc. Each bank is deciding what items they are and are not willing to pay for anymore.Â
4.Â You have to understand your credit is going to take a huge hit
This is not all it takes to get a short sale done but it's the start. This is the reality of the short sale transaction.Â You need a REALTOR who understands them, works them and can get you to closing.Â The longer it takes the more stress involved.Â Â Have an agent whether they are the listing or buyer agent who doesn't understand what this takes, then you are in for a long road on both sides of the deal.Â Worst case scenario:Â Seller goes to foreclosure, buyer has no place to live.Â Neither is a good option.Â
If you are facing a short sale or foreclosure situation, contact a REALTOR before it is to late. Ask the necessary questions and if you don't know what they are, email me: firstname.lastname@example.org,Â I will tell you what to ask.Â Good Luck to all in the New Year!