How a short sale works

In a short sale transaction, a knowledgeable real estate agent asks the seller to provide the required documents—such as income tax returns, closing documents, pay stubs, and bank statements—before listing the property.

Then, through a careful in-depth review of the seller’s current financial situation, a logical way to proceed can be set up, paving the way for a successful completion of the short sale. Short sales are a complex process, for both the buyer and the seller.

Next, the real estate agent will discuss the potential short sale with the lender and inform the seller of the results of their collaboration. When evaluating this information, the seller should always be aware that the lender has more control over the process than either the seller or the buyer, and should strive to maintain a courteous relationship with the lender with that in mind.

Note also that the lender and the seller are actually a partnership, because they both have to agree to the buyer’s offer in order for the short sale to progress.

“Low ball” offers can be a problem

In a short sale, potential buyers are usually hoping to find a bargain, and they sometimes make offers that are unrealistically low in comparison with the property’s estimated market value. As a result, the lender may determine that it is in their interest to proceed with foreclosure rather than accept the potential buyer’s offer.

An experienced real estate agent will realize that this is a possibility, and will make a counter-offer to the buyer before presenting the lender with the problematic original offer. Such “low ball” offers are usually considered to be a waste of time for the lender when it comes to reviewing them, and they often cause the lender to delay in responding, in regard to selling the property, or to ignore the offer altogether.

Virtually anyone who has participated in a short sale agrees that dealing with an experienced real estate agent really made a difference in meeting their needs and satisfying their concerns in going through this complex procedure. The lender is also gratified because foreclosure has been avoided and the buyer or seller, have reached their goals.

Gary Smith
BROKER
Keys Commercial Real
Estate LLC.
P. O. Box 1974
Key West, FL. 33041
Direct – (305) 304-7009
Fax- (305)292-4096
www.keywestlifestyle.com
Click to E-mail

Surrounded by beautiful homes this property needs a complete restoration. The concrete footings are new and the interior is gutted. It is considered a duplex by the city but should be verified by purchaser. Quiet lane in old town, this is for the buyer who can add their finishing touches to the home. This is a short sale.

Surrounded by beautiful homes this property needs a complete restoration. The concrete footings are new and the interior is gutted. It is considered a duplex by the city but should be verified by purchaser. Quiet lane in old town, this is for the buyer who can add their finishing touches to the home. This is a short sale.

Gary Smith
BROKER
Keys Commercial Real
Estate LLC.
P. O. Box 1974
Key West, FL. 33041
Direct – (305) 304-7009
Fax- (305)296-8105
www.keywestlifestyle.com
Click to E-mail