Here is a question and answer form that I recently emailed to one of our clients thinking of Short Selling their home. I thought I would share it with you!
(This particular client had 2 homes in which he was thinking of Short Selling and his brother who is an attorney wanted the answers to these questions. All contact information has been removed for obvious privacy issues)
1) Should you short sell both properties? (If so, should you do it at the same time or short sell one first, and then short sell the other? Which property first? Why?)
· We would recommend selling both properties in order to best establish your financial hardship. Typically when you are looking to cease your financial strain it makes more sense to short sale multiple properties rather than face further financial strain on a property that is upside down with no equity making a mortgage that is gaining you nothing. In all honesty you are throwing your money down the lenders toilet because your home will never be worth what you paid for. Short sell the home regain your footing and if you stay proactive with all other bills you can typically buy a home in 12 to 15 months.
2) If you short sell only the one property and not the other, does it impact your ability to short sell the other residence? (If so, how?)
· Typically the answer is No, this will not adversely affect your situation unless your financial hardship situation changes. (IE: You win the lottery, etc.) However it is hard to say indefinitely, due to the rapid and ever changing laws that come into place. Time is of the essence with Short Sales and the sooner you start the process is always better than later.
3) What are the fees for handling a short sale? (You said Mark McIntyre quoted $500, but I'm sure that doesn't take into account the realtor's commission)
· Mark McIntyre was absolutely right 500.00 out of pocket IS all that YOU as the short sale seller pays! The bank pays our commission.
4) What is the typical time frame for carrying out a short sale?
· These time frames really depend upon the sellers’ promise of communication and motivation to the Short Sale Real Estate Agent- (We received your fax today so it is obvious you do not fall short in that department and are a very reliable and an on point dependable seller!) This makes a HUGE difference! If we do not have the required docs we can’t move forward and vice versa. If you don’t have a Short Sale Real Estate Agent who has a well oiled team running you can’t expect immediate results! We have an in house negotiator who is an absolute work horse with a very large rolodex of immediate asset manager contacts so typically we estimate 30-75 days for a closing. Communication and working together is key! We are all working towards a common goal and that is the biggest factor in being a short sale real estate expert!
5) What is the typical outcome of a short sale? (Ex: Condo short sells for $95k with commission to realtors of 6%; is remaining $90k allocated in some fashion between primary mortgage holder with $113k debt, and second with $63k debt? Do you end up paying something to the two mortgage holders in order to get them to approve the short sale?)
· YOU PAY NOTHING!!!!!!! That is why hiring a team who KNOWS what they are doing is VITAL! Your debt is forgiven and this is achieved through the ridiculous amount of hard work, time, and most important the incredible effort our short sale processor puts forth every day on the phone with your lender! The banks do not care about your situation but every single one of us on The MVP Realty Team truly has a vested interest in helping people! We are all workaholics and believe truly in the motto that “If you help enough people get where they need to get going, you will get where you want to go as well!”
6) What are the steps and how is the negotiation of the short sale handled? (EX: Does the lender typically suspend foreclosure proceedings if a short sale is in process?)
· Our Short Sale processor provides the lender with a letter of short sale intent and the financial hardship letter immediately upon receiving a complete package in order to cease proceedings.
7) Where do short sale properties get listed for sale and who can buy them? Can a friend or family member buy them?
· Many other “Realtors” just place the home on the MLS, wash their hands of any additional marketing and wait for a buyer. Mark McIntyre hired a professional Marketing Client Relations Manager who specializes and has a passion for web presence! (That’s me Danielle =)!) Web marketing is hands down the most effective and efficient way to search for a home in 2010! 80% of home buyers are searching online!
Second answer- Yes a friend can purchase a short sale however there are certain stipulations on the relative aspect that you would need to speak directly with Mark McIntyre about.
If you have any additional questions please email or call us and we would be happy to provide answers!
