When I sold my first Fort Myers Short Sale (a condo in the community of Bellamar at Beachwalk) in 2007 the Short Sale process was uncharted territory. Suddenly, the road map to closing had changed, and it seemed to happen almost overnight! Some of the new obstacles to overcome were extended waiting periods of weeks and months to hear back on offers from banks. BPO's were being paid for by the banks to provide an "idea" of value for the home and what that particular home "should" sell for. And, I was being asked the same question over and over again from Home Buyers and Sellers alike, "Just what is a Short Sale?" - Answer: When a Seller asks permission from the bank to sell their home for less than what they owe the bank.
Now folks have become more familiar, sometimes almost "de-sensitized" to the notion of a Short-Sale. The Short-Sale is not going away anytime soon and there is a story behind every home bought and sold as a Short-Sale. One of the reasons we will continue to have more homes in the Fort Myers MLS is that there will be another wave of ARMs into 2010. However you feel about them, either as the Seller trying to sell "Short" or the Buyer hoping to purchase your new home, Short Sales are here to stay in the immediate future.
A couple of tips to keep in mind through the Short Sale process:
1. Hire a Professional Licensed Realtor who has the big "E" in Short Sales "EXPERIENCE"
2. Be prepared to wait, and wait and wait - whether you are buying or selling. The banks have an influx of homes that they are processing short right now. To illustrate: my husband recently spoke with a Listing Agent of a Short Sale for one of his Buyers. The Realtor shared that this particular home was recently reassigned to a brand new negotiator because the last negotiator was "overwhelmed" with work from other short sales pile on their desk.
3. Buyers and Sellers - Know the basic Short Sale process:
A.) Buyer -You find the home you want to place an offer on and you look over the comparable solds with your Realtor to come up with a market value for the offer price.
B.) Buyer's Agent obtains your signatures on the offer and submits the contract to Short Sale Listing Agent.
C.) The Listing Agent reviews the contract with Sellers, who have to agree to the price and if/when they do agree, then the offer is submitted to the bank.
D.) Sellers - It is in your best interest to already have submitted a Short Sale package. Your Listing Agent can obtain the requirements for you from your particular bank. This will need to be submitted either when you first list your home, or no later than the time of the offer. The bank is asking for very personal information from you. Some of the information they are looking for is: A "Hardship Letter", proof of income, Tax filings, Debts, Assets - bank account information.
E.) Understand that if there is a second mortgage on the home, it can take even longer to close on a Short Sale. The reason for this is that the first mortgage gets the payout first. However, the second mortgage (bank) has to agree to the "leftover" money they will receive or not receive. One of Shane's Short Sale listings took almost a year to close because of this. However, he did sell the home as the buyer and the seller were patient and stuck with it. It took double the negotiation efforts to work out a conclusion both banks felt good about.
F.) Your feelings of frustration, anxiety and excitement are all very normal. If I had a support group for buyers or sellers of Short Sales, I just know it would be full!
Shane and I are available as a resource to you should you have any additional questions about selling your home in a short sale or buying a short sale. You can contact us either by phone or email.
Happily serving Fort Myers, Fort Myers Beach, Estero, Lehigh Acres, Bonita, Bonita Beach, Sanibel Island, Captiva Island, Naples, Marco Island.
Providing Excellence and Service in Your Real Estate Experience.
Shane & Joy Goushaw
Licensed Professional Florida Realtors
Sandals Realty
Cell: 239-823-5280
Fax: 239-245-8042
Website: www.FortMyersRealEstateFloridaHomes.com
Blog: www.WeLuvFortMyers.com
Hi Joy, short sale can be a painful process. Thank you for the article
John Pusa
Great Job, Joy.......
I had a buyer FINALLY walk after 6 months of waiting for the seller's bank/lender/investor to respond....Yikes. and it was not for any lack of action on behalf of both the selling and listing agent. I have a special vodoo doll with the bank's name on it....
Keep up the great work....
continued business success to you!!
Pat McGuire
Thanks John! Short Sales are unfortunately painful.
Pat - I understand entirely - you can be doing your due dilligence as well as the listing agent, however the banks can be the straw that breaks the camels back on buyers patience! So sorry after all your efforts that it did not work out. Thanks for stopping by!