What is a Short Sale?
These days youre hearing more about pre-foreclosures and short sales, position to help struggling homeowners, people who are looking for a way out of an often desperate financial situation. But what exactly is a short sale? Its the sale of a property for an amount below the existing debt on the property. A short sale is generally preferred to outright foreclosure, in that it helps a bank to get rid of a property. A short sale can take many months to complete, and is racked with details that have to be tended to in order for the deal to succeed.
There are many moving parts in this process, and each requires its own skill set, with time to learn so you can adjust when things dont go as planned. The power of real estate short sales is that they give you enough control to work the variables and build the business you want. If you understand the short sale process and the steps involved, youll know how you can best help a homeowner, present an offer to the lender that has the best chance of being accepted, and plan what the best exit strategy will be for a given situation.
Dont expect banks to be efficient or logical theyre just not. Sometimes things will happen that makes you shake your head, so make sure each and every detail is attended to:
- Understand the property and the homeowners situation.
- Gather the completed paperwork and make sure it gets to the lenders.
- Make sure the offer is assigned to a LM.
- Ensure that an interior BPO is done.
- Find out what the BPO is.
- Find your buyer.
- Determine your ideal exit strategy.
Vice President of Marketing
Stephanie W. Weiss
