Taylor1 Inc. – Trusted specialists in Real Estate Management
Short Sale Process
Taylor1 Inc - your trusted experts in the short sale process
Q: What exactly is a short sale?
A: A short sale is when a home owner approaches a real estate agent, such as Taylor1, requesting that they advise them and mediate on their behalf on the “short sale” of their property to avoid foreclosure. The real estate agency will provide an accurate appraisal of the property’s value. They will then approach the homeowner’s mortgage bank requesting that the bank write off a percentage of the over leveraged owner’s mortgage commitments. This is in order that the property can be a written down to its current market value. This value will be finely tuned so that it will be of interest to potential buyers in today’s receding market. The realtor will generally be successful in finding a buyer and closing the short sale.
Q: Who should consider putting their property up for short sale?
A: Homeowners who have seen their properties depreciate in value and their mortgage commitment rise to an extent that the value of the property has fallen to a point that the outstanding mortgage is larger then the current sale value. Sadly most homeowners will have no other tangible assets that can be realized. They may have already become so overleveraged that they are unable to consistently generate sufficient regular income that they can use to meet future payments or cover their backlog. Once the mortgage bank has begun to instigate foreclosure proceedings, the home owner should immediately preempt the situation by approaching a real estate broker, such as Taylor1, to investigate and begin the short sale procedure.
Q: How long should the short sale process take?
A: If the owner cooperates with the real estate broker, the process can move forward surprisingly quickly. The first step is that the homeowner writes a letter to the mortgage bank explaining their financial situation (Taylor1 provides templates of a hardship letter for your assistance). The letter should be accompanied by pay slips, utility bills and details of any realizable assets in the owner’s possession, and why they choose not to realize them. Correspondingly the real estate broker will provide an honest appraisal of the current value of the property, adjusted to suit a fluctuating market and current demand. Companies such as Taylor1 with an extensive client base can usually provide potential buyers who will be prepared to make rapid decisions and effect immediate payment. If all of these factors fall into place, then the sale can be affected quickly.
Q: How important is it to appoint a professional real estate agency with experience in the field, to handle my short sale?
A: Of the ultimate importance. If the real estate agency appointed is ineffective in handling the short sale, does not have the necessary experience in assisting their client in submitting their “hardship request”, their appraisal of the property’s current market value is either too high of too low, has little or no access to potential buyers, then the process can take a very long time or not go through at all. This will leave the mortgage lender with no option but to foreclose on the property. You need a real estate broker who can effectively mediate with the mortgage lender and potential buyers.
Q: How important is it to set the house price accurately?
A: Very important. If the real estate company sets the price too high, and the house does not sell then the implications of this for the property owner is foreclosure, compounding interest and the almost certain inevitably of bankruptcy. If on the other hand, the price is set too low, then there will be a shortfall still needing to be paid by the former owner. This shortfall will rapidly grow as the bank applies compounding interest. In very little time, the former house owner will find himself in court and being declared bankrupt.
Q: What does the home owner have to gain from arranging a short sale on their property?
A: In the simplest of terms, a last chance opportunity to extricate themselves from a very unpleasant situation in as good shape as possible. The short sale option gives you some control back over your finances, life and future financial health. Avoiding the necessity of foreclosure and bankruptcy and keeping your credit record intact enables you to retain your dignity and avoid the enormous strain on your physical and mental wellbeing that a foreclosure brings.
Contact us now at Taylor1 to arrange a free consultation.
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Taylor1 Inc – Your real estate management specialists in:
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Pre-foreclosure advice | |
Successful Short Sales | |
Helping over-leveraged home owners | ||
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One on One Support | |
Property Investment | |
Matching buyers with sellers | ||
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Real Estate Agent Training | |
Negotiating with lenders | |
Experienced Short Sale Experts |
