Short Sale Information-Since it seems to be the norm these days!

What is a Short Sale?
A short sale, negotiated settlement, or short pay occurs when a lender agrees to accept less than the amount owed to pay off a home loan as an alternative to foreclosure. The lender usually agrees to a short sale because they know if they take the property back through foreclosure they are going to take a much larger loss.

But My House Is Going to Foreclosure, Will I have Enough Time?
Starting a short sale will not automatically stop the lender from starting the foreclosure process. However, successfully convincing lenders to postpone a foreclosure, while negotiating a short sale is crucial. There are no guarantees the lender will accept the short sale.

How Long Will it Take?
The short sale negotiation process is a lengthy one. It may take several weeks to months before a lender and home owner can agree on acceptable terms. Make sure your Realtor keeps you informed of the progress throughout the entire transaction.

Can I Stay in the House?
The purpose of a short sale is to get the property sold. So, you will be moving. This is not a program that can stop a foreclosure and allow you to keep the house indefinitely. It is a lengthy process and you can stay in the home until the sale is complete.

What type of paperwork do I need?
The lender will require a view of the financial package that usually includes:
* (2) Months’ bank statements
* (2) Months’ pay stubs
* (2) Years’ IRS tax returns

How does the Real Estate Agent get paid?
Your Agent will negotiate directly with the bank for all real estate agent commissions. In most cases, the bank will offer the listing agent a smaller than average fee for performing the marketing and negotiation responsibilities associated with representing a seller.

TOP 10 CREDIT DON’T’S DURING THE LOAN PROCESS

This is short and to the point. If you’re in the process of buying a home follow the steps below until you have keys in hand. Keep in mind your credit will be check again 1 or 2 days before the closing date!

1.      Don’t do anything that will cause a red flag to be raised by the scoring system. For example: purchasing appliances for your soon to be new home and charging it to your credit card or buying  a new car. These things can wait until the deal is done.

2.      Don’t apply for new credit of any kind.

3.      Don’t pay off collections or charge offs.

4.      Don’t max out or over charge on your credit card accounts.

5.      Don’t consolidate your debt onto 1 or 2 credit cards.

6.      Don’t close credit card accounts.

7.      Don’t pay late.

8.      Don’t allow any accounts to run past due-even one day.

9.      Don’t dispute anything on your credit report.

10.  Don’t lose contact with your mortgage and real estate professionals.

10 Questions to Ask When Choosing Your REALTOR®

Make sure you choose a REALTOR® who will provide outstanding service and meet your individual needs.  

1. How long have you been in residential real estate sales? Is it your full-time job? While experience is no guarantee of skill, it does provide a higher level of knowledge.  
2. What designations do you hold? Designations such as e-Pro® and CRS®, which require that agents take additional, specialized real estate training, are held only by about one-quarter of real estate practitioners.
3. How many homes did you and your real estate brokerage sell last year? By asking this question, you’ll get a good idea of how much experience the agent has.
4. How many days did it take you to sell the average home? How did that compare to the overall market?  The REALTOR® you interview should have these facts on hand, and be able to present market statistics from the local MLS to provide a comparison.
5. How close to the initial asking prices of the homes you sold were the final sale prices? This is one indication of how skilled the REALTOR® is at pricing homes. Of course, other factors also may be at play, including whether it’s a buyers or sellers market.
6. What types of specific marketing systems and approaches will you use to sell my home?  Look for someone who has aggressive and innovative approaches, and knows how to market your property competitively on the Internet. Buyers today want information fast, so it’s important that your REALTOR® is responsive.
7. Will you represent me exclusively, or will you represent both the buyer and the seller in the transaction? While it’s usually legal to represent both parties in a transaction, it’s important to understand where the practitioner’s obligations lie. Your REALTOR® should explain his or her agency relationship to you and describe the rights of each party.  
8. Can you recommend service providers who can help me obtain a mortgage, make home repairs, and help with other Real Estate related issues? Agents should generally recommend more than one provider and let you know if they have any special relationship with or receive compensation from any of the providers.
9. What’s your business philosophy? While there’s no right answer to this question, the response will help you assess what’s important to the agent and determine how closely the agent’s goals and business emphasis mesh with your own.
10. How will you keep me informed about the progress of my transaction? How frequently? This question you need to ask yourself. Do you want updates twice a week or do you prefer not to be bothered unless there’s a hot prospect? Do you prefer phone, e-mail, or a personal visit?  Once you’ve decided on your preference then make sure your agent is aware of your preferred method of contact.