What is a short sale and how do I start the process?

Fort Mill, Rock Hill and other York County areas are seeing more short sales

Current economic conditions are placing great pressure on family finances.  Sadly, a high percentage of mortgages are in distress.  As financial conditions change, home owners in Rock Hill, Fort Mill, and Lake Wylie may not be able to continue payments based on their mortgage agreement.  A short sale can be negotiated when a home owner recognizes that he or she is no longer to make the mortgage payments and the proceeds from selling the property are less than the balance owed on the loan.  A short sale is preferable to foreclosure, and it can benefit all parties.  Homes in the Piedmont professionals understand the short sale process, and we are prepared to assist you.

Several steps are involved in a short sale, but the knowledgeable real estate agents at Homes in the Piedmont can provide the help needed.  As soon as it is known that your financial situation has changed, you must take action.  Start now to minimize the impact that may result from foreclosure or bankruptcy.  Be assured that your situation will be treated with the upmost confidentiality.

  Generally, the steps in the Short Sell Process are:

1. The professionals at Homes in the Piedmont will pre-qualify you by determining where you are with your payments, whether a foreclosure date has been set, your mortgage company and whether there are any second liens.

2. We will conduct a comparative market analysis of the property.  Together, we will document any needed repairs.  This determines the market price that will be used when the home is listed.

3.  Homes in the Piedmont will need a letter of authorization from you to negotiate with the bank on your behalf.

4.  We will help you write a letter stating your financial situation and noting the reasons for the financial hardship. You will provide financial document to support your status including tax returns, bank statements, pay stubs, health related bills and other financial commitments.

5. Homes in the Piedmont will need a financial statement from you.  We have forms available in our Short Sale Package.

6. As your agent, we will obtain the bank’s specific guidelines for negotiating a short sale.

7. Homes in the Piedmont will list the home at the agreed upon price.

During the marketing time we will make price adjustments based on bank approval until an offer is made.  When an offer is made, the following steps occur:

1. Homes in the Piedmont will present a contract to you.

2. We will submit the offer to the bank, along with a complete short-sale package, documenting your financial status and the buyer’s qualifications.

3. We will contact the bank within 48 to 72 hours of submitting the package to ensure that all necessary documents have been received. Clarify the procedure and time frame moving forward.

4. The bank may require  two BPOs (broker price opinions), which typically takes anywhere from one to 20 days. Generally banks are looking for a BPO that is within 15 percent of the offer.

5. We will continue monitoring the process once the offer is sent to the negotiator, which tends to take 30 to 45 days, and then on to management for a decision, which tends to take seven to 14 days.

6. You should allow another seven to 14 days for receipt of a demand letter from the bank.

7. We will schedule the closing, which typically takes another 30 days.

The professionals at Homes in the Piedmont are knowledgeable  and ready to provide assistance.  Whether you are in Rock Hill, Fort Mill or any York County location, if you are considering a short sale, contact us.