In today’s challenging economy, it’s not uncommon for homeowners to fall behind on their mortgage payments and be facing the possibility of foreclosure. A short sale may be a preferable alternative, allowing the homeowner to sell their home for less than the balance owed on the mortgage and other liens on the property. The short sale process is long and complicated, requiring the seller to work with all lien holders to come to an agreement of sale on the property. It’s important for any seller considering a short sale to have a seller’s agent who has specific training and experience in short sales, preferably having obtained SFR certification from the National Association of Realtors. Choosing the right realtor for a short sale can make all of the difference in the transaction.
Working with a SFR certified realtor from the start will help get the ball rolling. Your realtor should first complete a detailed market analysis to determine the current market value of your home. This information will be important to you as you determine how the current market value compares with the total balances of mortgages, lines of credit and other liens on the property. Your realtor can assist you in determining whether a short sale is a viable option for you.
A SFR certified realtor can then guide you through the process of creating a Short Sale Package. This package is required by lenders and includes documentation of income and employment (or unemployment), tax returns, detailed information on all loans and liens on the property, and a statement explaining the hardship that prevents you from making your payments. The Short Sale Package also includes a listing agreement prepared by your realtor, as well as the market analysis. An experienced seller’s agent can ensure that your packet is properly prepared to your lender’s specifications.
Each lender may have different requirements throughout the short sale process, which is why choosing a realtor with short sale experience is vital. Your realtor needs to have excellent communications and negotiating skills to work with all lenders involved and ensure that every requirement is being met throughout the process. Most loss mitigators assigned to short sale files have large caseloads, and working with someone who knows the process and can make their job easier will help smooth the way for a successful short sale.
The other important role your SFR realtor will play is in successfully marketing your home and tapping into buyer demand. These certified agents also have experience in writing strong agreements that are appealing to lenders in a short sale situation. Once you have a signed agreement on your property, your realtor can guide you through the continued negotiations with your lenders.
If you find yourself in a situation where you are considering a short sale, remember that a trained and experienced seller’s agent can help you through this stressful time. A SFR certified realtor can help you meet your lenders’ requirements, expertly market your property, work with your lenders to come to an agreement and even direct you to financial, tax and legal professionals if needed, so that you can make a fresh start.
For more information on short sales, or for answers to any of your home selling questions, contact Mary Jane Harris, GRI, ABR, SFR, Realtor at mharris@russlyon.com or 480-239-6708.
