What is a Short Sale?
A short sale is when your bank accepts less than what you owe them on the loan. In Solano County, most homes bought in recent years are underwater by about 50%. So you probably have a home worth about $230,000 and you paid over $400,000 for it. The lender won't drop your balance but they may accept what's called a short sale.
What Are the Steps to a Short Sale?
Is to contact us so we can figure out how much time you have before your sale date. Don't wait until the last minute because the lender may just decide to foreclose and the short sale option is out of the picture. It doesn't cost you anything, and you want someone who can give you free advice so you can move your family to another home without all the stress.
Once you contact us, we will find out what paperwork the bank wants to submit a short sale request. If you are lucky to have a Wachovia loan, they are one of the fastest and easier banks to work with. They don't require that much paperwork and can sometimes even give you cash back at the short sale. We closed many deals with them and it's so smooth. Some banks like Bank of America, Chase, Citi, want all your finance documents like W2s, pay stubs, bank statements, 401K, financial worksheet. It's almost the same type of stuff when you may have tried a loan mod, or when you first applied for your loan.
Once we have all the paperwork, we can put together a listing agreement, and our agents will do a bpo, broker price opinion so we know how much your home is worth. The bank wants full market value for the home, so we will need to list it at the price we think the lender will accept. It doesn't make sense to list a home way under value only to get flooded with offers, then the bank decides they want thousands more than what the list price was.
Once we get an offer on the property, we will submit the purchase contract and other documents to the lender for approval. The lender will order their own bpo to make sure the offer submitted is within their bpo range. If it is, then it should go to the next step for approval. Now depending on the lender, the short sale process can take anywhere from 45-90 days to complete. They are trying to get better, but short sales do take a lot of time.
Once we get the short sale approved from the bank, they will send us a letter. The buyer will then do their inspections, appraisals, and get their loan going. We will then close about 35-45 days after approval from the lender.
Can the Lender Come After Me For the Difference?
No, back in July 2011, Congress passed SB 458 so the lenders can't come after you for the difference. Below is a link for information on this.
What Lenders Do You Deal With?
We can deal with all lenders, if you have a first mortgage, second mortgage. We can guide you through the the process and explan what happens at each step. Some lenders want documents faxed, some lenders want documents uploaded. Each lender is different, but we can handle them all.
I'm Lucky & Have Equity in my Home, Can You Help Me Sell?
We handle all sellers, so if you are lucky to have some equity in your home a lot of people prefer a "regular" sale because they don't have to wait for lender approval. These sales are much faster depending on the condition of your home. Please go ahead contact us, and we will forward your information to an agent who can assist you.
About How Much is my Home Worth?
We have a tool that can you give you a quick estimate on your homes value. Click here to use this tool. It's probably best to contact us to get a better value.
What does it cost for a short sale?
-Zero, we get paid by your lender.
I don't live in the property...
-Doesn't matter, we can still help.
Can you help me find a rental?
-Yes, we teamed up with Real Property Select and can provide a smooth process to your new home.
I received a Notice of Default...
Normally it takes the lender another 90-120 days before your property will be foreclosed. On average in Solano County it takes about 60 days to sell your property, so don't wait until the last minute.
My friend got cash on the short sale
It depends on the lender and what you qualify for. If you have a Wachovia loan (now Wells Fargo), they sometimes give up to $3,000 cash at close of escrow. There are also different programs you may qualify for.