Richard has sold dozens of short sales, on both the buyer and seller side. The Schulman Team has experience with every major bank. When looking for a distressed property specialist, contact Richard.
Buying Short Sales – As a buyer in the current real estate market, you are likely aware that there are many short sale properties on the market. A short sale is a property where the market value of the property is less than the loan amount owed to one or more lenders. A short sale property may be a good deal for you, but there are some things to know about short sales before you begin the processing of buying one.
A Short Sale Must Be Approved By The Lender – Even though a seller might accept your offer, it will be subject to approval by the lender. Note that the listing price is set by the agent and seller, not the bank. Some short sales on the market will be priced extremely low – these extreme lowball prices will very likely not be accepted by the sellers’ bank. A lender will also likely send out an appraiser to evaluate the property value to advise the bank accordingly. You should be prepared to offer a price near market value to have the best possible chance of having your short sale purchase approved.
Be Prepared To Wait – Even after your offer has been accepted by the seller, the offer and sale of the property still must be approved by the seller’s lender (or lenders, if there is more than one mortgage). This requires a long process of paperwork and negotiations, which on average take about 4-8 months (sometimes longer, sometimes shorter). You should be prepared to patiently wait for the approval, and once approved, you will begin the escrow process.
Lender May Not Approve Any Repairs – If the short sale is approved, it will likely be as “as is” sale, meaning the property will come to the buyer as is, with no repairs done by the seller. While standard sellers and even REOs may repair property defects or offer credit for repairs, it is far less likely for this to happen in a short sale. It is important to conduct an inspection of the property to make sure there are no deal breaker problems, and that you are prepared to make any needed repairs to the property.
“Approved” Prices are Quickest – Though short sales may not always be short, making an offer on an “approved short sale” can be a quicker process. An approved short sale has a price that has already been given the green light by the bank. This could be due to the fact that another interested buyer made an offer that was approved, but did not end up sticking around to buy the property.
Work With An Agent Experienced in Handling Short Sales – Buying a short sale can be a very tricky and complex process, so it is extremely important to choose an agent with short sale experience. Make sure you ask your agent how many buyers they have represented in a short sale, and how many they have successfully closed. Having an experienced agent on your side may be the difference between getting your short sale purchase approved or not. A qualified real estate professional will be able to show you short sale properties, get your offer accepted, help you negotiate the purchase when you find the right property, and smooth communications with the lender. I have closed over 50 short sales, have an extremely high success rate at getting my clients’ offers accepted and approved. I stay in close contact with the seller’s agent to push the process along. I also have very close upper management contacts at all of the major banks, so I can help get the short sale expedited.
While there are some caveats to buying a short sale, if you have the time and patience to see it through, short sales can be a great opportunity to find a property at a competitive price.
Move Out Relocation Fee
Did you know you could be eligible for up to $35,000 in relocation fees? Contact me for more details.
New HARP Refinance Plan
The new refinance plan announced by the government has some specific guidelines which you can read more about here. It allows you to refinance as long as you have made your last 6 payments or 11 of your last 12, without regard to loan balance. This program will NOT modify the amount the you owe, and may not be a good solution if you are significantly underwater. Please contact me for more details.
What is a Short Sale?
A short sale is a property sales transaction in which the seller’s mortgage lender agrees to accept a payoff less than the balance due on the loan. In the transaction, the seller’s agent obtains an offer at or near the market value, and submits it to the lender. The seller’s agent, or seller’s agent’s negotiator coordinates the processing and negotiation of the file with the lien holders (lenders, HOA, taxes, etc). This process is ironically not short, as it can take up to several months. I maintain my own in house negotiator for best results, and excellent client care. At the current time, there are several legal and tax protections for sellers of short sales. Please see the above FAQs and resources.
How do I do a Short Sale on My Property?
First, you must assess if a short sale is the right way for you to go. If so, you need to hire a real estate agent who is experienced in short sales and knows how to persistently negotiate with the bank to get your short sale approved. I can provide a free, no-obligation consultation for you, to determine the pros and cons of the short sale for your situation. My team and I will guide you through the process. We know that you want to be inconvenienced as little as possible, so we coordinate limited showing times, we collect as many documents up front as possible, and we provide weekly updates.
Is a Short Sale the Right Choice for Me?
Each situation is different. If you are having trouble paying your mortgage or want to sell but are underwater, a short sale may be the right option for you. I can help you assess your situation to determine if a short sale is the right choice for you. The two most important factors are always the cost of the property monthly, and the distance the property is underwater. Current laws and lending guidelines, encourage short selling, and allow short sellers to buy new properties within 12-24 months after completion of the short sale.
The Key to Richard’s Short Sale Success
Richard has two experienced full time short sale processors on staff. They communicate daily with the banks, with the persistence required to get the sale approved
Richard’s team is well versed in all of the major banks’ short sale software and processes
Richard knows the correct steps to take to reach the final approval; nothing slips through the cracks
Richard has developed close contacts at many of the major banks, who can help get a short sale expedited
Richard has short sale outsourcing options available for agents who don’t want the hassle, or don’t have the expertise, to close a short sale
Richard has closed over 70 short sales, and has over 40 current short sales in process. These include all property types including land, condos, homes, multi-family and commercial properties, with values from $100,000 to over $3,000,000.
Richard has closed every short sale he has been given.