Our Short Sale Team negotiators are licensed real estate brokers and trained short sale specialists dedicated to negotiating short sales for homeowners in the Tampa Bay area. Our services are at no charge to you. We will work closely with you and our licensed real estate professionals to get the short sale reviewed in a timely manner and position the files for a favorable decision.
Short selling your property can be an stressful and overwhelming process. It is important to know that you understand the short sale process. One of the most important components of the short sale is having your property listed for sale. At Realty Resources we have an extensive network of professional and experienced real estate agents that can help you get your property listed and under contract.
Things you should know about the short sale process
1. Your lender(s) look at your short sale application from several perspectives.
a. Will we make more from short selling then foreclosure?
b. Does the seller have a valid hardship?
c. Have all documents needed for the review been provided?
2. You must have the property listed for sale with a licensed real estate professional.
3. The lender has policies about deficiency and terms of the approval that will be stipulated in writing. It is important you understand these terms prior to closing.
It is important you speak with an attorney if you have any legal questions about foreclosure or short sales.
Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most foreclosure auctions equal the outstanding loan amount, the accrued interest and any fees associated with the foreclosure sale.
If the property is real estate owned, the bank will then go through the process of trying to sell the property on its own. It will try to remove some of the liens and other expenses on the home, and then try to sell it on the market. Real estate investors will often go after these properties as banks are not in the business of owning homes and, in some cases, the house can be bought at a discount to its market value.
Most foreclosure properties are referred to by
investors as "distressed" properties. Bank-owned foreclosure homes are usually sold "as is," which means that the discount you just saved on the purchase price can easily be eaten up by unforeseen
expenses — such as repairs not immediately apparent in an exterior inspection. Many owners of homes that go into foreclosure have been struggling financially, which usually means that the house has
not received needed repairs or general maintenance for a while. Some homeowners who lose their property to a lender frequently damage the property. So be prepared to do renovations and repairs. Hire
a licensed home inspector to give you a written estimate of the cost to repair the property. Budget that number into your purchase price. Repair costs can be used later in your negotiation with the
bank to reduce the asking price.
Once a home has been located, search the public records for
liens and outstanding taxes. You can perform a preliminary check of title on RealtyTrac and then hire a title company to run a full, insured title search before closing the deal. Liens on the
property can drive up the purchase price. Common liens typically are placed on a property for unpaid loans borrowed against the property, taxes or unpaid contractors (mechanics liens). These liens
remain intact until the money is paid, which means that you may have to pay off the liens on the foreclosed property you are buying — even though you're not the one who didn't pay the property taxes.
Banks should clear the title before selling but never assume this is the case — just as you would if you were buying a property from anyone else.
Investors should be prepared to negotiate a lower down
payment, a lower interest rate, a reduction in closing costs and a lower asking price. Many mortgage lenders may be willing to waive some closing costs, maybe even offer a break on the interest
rate or the down payment. Moreover, some lenders might offer to finance the property at a below-market rate or with a lower-than-usual down payment. Don't be afraid to ask for a better price and
Although most banks want to unload their foreclosed
properties, they won't necessarily do so cheaply. So you aren't guaranteed a fabulous price. But remember you're dealing with an eager seller. Even though the bank's REO manager or their listing
agent might suggest that the list price is "firm," never be afraid to negotiate price — especially if the foreclosed bank-owned home needs repairs. When submitting a low offer, you need to
substantiate the reduced price in writing and document your case. You should furnish photographs and cost estimates for repairs to support your offer amount.
With good credit, many banks will loan the full price of the foreclosure or more. If the home is to be used as a rental, many banks will require only a 10 percent down payment. Foreclosure investors with a large amount of equity in another home may get a line of credit from their bank to purchase a foreclosure. When they convert the line of credit to a mortgage, no down payment may be required.