Short Sale Pitfalls

Well, there are several pitfalls to watch out for that only experienced agents know about.  Check out the list below…

Pitfall #1 – Not knowing the rules!
Each bank has different processes for a short sale and your agent needs to know this.

Pitfall #2 – Poor Package Preparation
Lenders require specific documentation and will not proceed until your package is complete.  The quality of the information will determine success.

Pitfall #3 – Negotiation Experience
Is the agent working with an experienced negotiator.  The negotiator is the one that contacts the bank and works out the details.  Some agents do this themselves and you need to know if they have experience doing this and have the time to do it.

Pitfall #4 – Preparation
Is the agent prepared for each step as the process unfolds.  The short sale can get derailed at anytime and you need to be prepared so this does not happen.

Pitfall #5 – Lack of Focus
It is best to work with a Realtor who focuses mainly on Short Sales.  If this is their specialty, the odds of a successful short sale is much higher.

Pitfall #6 – Not paying attention to Details
If small details are overlooked, the bank may not approve your short sale.  You need to work with someone who knows to be on the lookout for the small points that others miss.

Pitfall #7 – Pricing and Appraisals
Your house needs to be properly priced at the beginning and your agent needs to know how to handle the bank representative who comes out to determine its value.  You only get one chance to get this right.

Pitfall #8 – Determination
Short Sales can take anywhere from 3 to 6 months to get approved and you need to be determined to hang in there till the end.

Pitfall #9 – Legal Liability
Many parts of the process are the same as every real estate transaction so you still need to take the proper legal protection.  You don’t want to get sued later on for not disclosing pertinent details.

We will make sure to avoid these pitfalls and get your short sale approved.  Then you can move on with your life and leave the stress behind.

If you are in San Diego and want to explore a Short Sale, give us a call today! We will immediately email you our Seller’s Short Sale package.  This will give you all the info needed to start the process.  619-981-3243

San Diego Short Sale Professionals

What is a Short Sale?

If you have been shopping for a home recently or been checking out available homes for sale in your area you may have seen that many of these properties are being advertised as a “Short Sale”.

But what does that really mean?

Well, basically it means that the seller of the property owes the bank more than the home is worth.  This can be a common scenario in cases where the seller purchased the home in the last few years or they refinanced the home and pulled cash out the the property that they no longer have available.

Here are some important points to consider if you are considering purchasing a “short sale”

• The seller has to qualify for the short sale.  They have to be able to demonstrate to the bank that they can no longer afford the house AND have no way of making up the difference in the amount owed.  Not all “short sales” get approved.
• It can take any where from a few months to over 9 months to get bank approval for the sale.  You need to be patient and prepared to wait.  Progress can be slow and frustrating.
• Does the listing agent have all the proper documentation from the seller to get the approval.  The bank will not move forward until ALL the necessary documents are in place.
• Is the listing agent using a short sale negotiator?  This is a service which does the follow up with the bank and helps move the process forward.  You just want to make sure that the calls to the bank are being made and someone is actually working on the transaction.
• Does the seller have any financial reserves in case the bank asks for extra costs to be paid.  You want to see if the seller has some cash so that there are no last minute problems.

There are many more points to consider and a good real estate agent who works with short sales can help you through the process.   Give me a call if you have more questions, 619-981-3243.  If you are in San Diego, we have a short sale package that can help with the decision making process and is available by email.  Professional San Diego Short Sale.