Northern Nevada Real Estate
Short Sales Today
Lisa Wetzel and Jim Valentine
RE/MAX Realty Affiliates
Short Sales Today
We've come a long ways since we started bandying the phrase "Short Sale" a few years back. The early years were painful for all, the Lenders, Borrowers (Sellers), Escrow Officers and the Agents. Early on there were many delays, more likely stall tactics, on the part of the Lenders. The most common and frustrating were the extremely long holds during phone calls, often terminated with a disconnect, and the missing documents.
All documents had to be submitted via facsimile with pertinent information on the top of each page. It was time consuming, the packages ranged from 60 to 130 pages each. The faxes were sent, and transmission reports indicated good result, but inevitably the Agent was told that the documents were not to be found. Amazingly, they were received on the third such submission. Always on the third. It was the game they were playing.
There were no guidelines, and the Lenders were confused. Today there are guidelines. Confusion still reigns, but it is less chaotic, and many positive results (for the Borrower/Seller) are being realized. Many Lenders have committed to helping the distressed owner, not always voluntarily but they've done it nonetheless. They have increased their efforts to make Short Sales work. Approval times have been shortened, and the personnel working for the Lenders are usually more pleasant than they were. The long phone calls have been replaced by internet portals where the information, tasks, and communication are all done via computer. The process is quicker, not limited to conventional business hours, and creates an ongoing record for reference.
Today there are often established benefits for most of the loan servicers and the investors. Understanding that the experienced Short Sale Agent can interpret the wants/needs of the Lender to make the Sellers and their circumstances viable for Short Sale approval. Most Lenders are giving approval and waiving their right to pursue a deficiency from the Borrower. This is extremely important during your Short Sale approval process. Without it you must look at your situation and ascertain whether or not you should just let it go to foreclosure. Your Agent and your Attorney can help you with this evaluation.
Most Short Sales are going forward today with reduced hassle. We've seen some amazing positive results including approval for the short sale of acreage forgiving over $200k in debt. Each situation is unique and must be evaluated on its own merits. Your Agent will do that as part of the process. You should have an idea of the likelihood of success at the outset, but that isn't the final word. We've had "sure thing" situations refused and "no way" ones approved. There are many factors in play that are constantly changing. Put your best package together and go for it. Turned down? Try again. The new people involved can give you a different result.
Our Advice: Short Sales are now normal. Don't be bothered by the stigma of the Short Sale, rather get the facts of the property and people involved to assure your success. This is very much a niche part of the real estate industry that not all Agents have worked in. Without the knowledge of an experienced Short Sale Agent you can be adding months to your transaction and putting the likelihood of success at risk. There are many good Short Sale Agents. Make sure you have one.
The are many rewards for effecting a successful Short Sale for all concerned. It is worth the work and frustration if you can tolerate it.
When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless!