My System for Success:

Once a buyer has made an offer on the property, we submit the offer to our selling client for their approval or counter.   It's very important to understand that while we may take several backup offers on the property we only submit one offer to your Bank. Submitting one offer to the bank dramatically increases our chances of a successful close of escrow on your home.  We are looking for one qualified buyer committed to purchasing your home!  I also require the Buyer deposit $500.00 of their Earnest Money with the Purchase Contract.  Requiring this deposit commits the Buyer to your home.  Not many Buyers are willing to walk away from $500.00.  Likewise a Buyer who isn't 100% committed will not likely submit an offer, but again, we are looking for one committed Buyer to purchase your home, not a Buyer who is submitting multiple offers on multiple properties.  We have found that waiting for a Buyer who will stay with the process and wait patiently for the Short Sale Approval is the best plan of action. 

Upon your acceptance of the offer and the contract submission to the bank are complete, the negotiation process begins. Depending upon several factors, largely the speed and degree of cooperation we receive from your bank, this process could range anywhere from 60 - 90 days, some shorter, some longer. Once we receive Short Sale Approval from your Lender/Bank the buyer will typically be given a 30 day period in which to close the sale on your home.

Some short sale questions we hear...

How much will it cost the home owner to transact a Short Sale?
Nothing, it's true.  We understand that there may be a financial hardship for the homeowners of a short sale. Our ultimate goal is for our sellers to incur no out of pocket expense. We negotiate a “net” settlement with the bank in order for them to release the lien on the property. This net pay off is after all fees associated with a  real estate transaction: real estate commissions, short sale coordinator fee, title fees, escrow fees, buyer closing cost, etc.  In many cases, however the lender will not pay HOA fees, past dues, fines transfer and disclosures. This can sometimes be in excess of hundreds of dollars, therefore we do ask you to try very hard to keep the HOA dues current. 

How do you know the bank will accept our offer?
We don’t...but if the offer you receive on your home is close to fair market value then there is a much better chance of us negotiating the offer to a successful close. I always pursue a market value offer because the bank is much more likely to accept an offer that is supported by local comparables (comps) and will take less time to approve the offer. An offer that is slightly under market value will be evaluated as we receive them. Rest assured, in my marketing efforts to other agents, I highly discourage what are referred to as 'low ball’ offers. 

How long does the Short Sale process take?
From the time we receive the contract to the close of escrow, we are seeing an average of about 75 days.  Some require a little more, others less.  The banks are highly incentivised to successfully close short sales and as a result, they are becoming quicker at approving, processing and completing short sales today than even a few months ago.  Lenders are continually reviewing their process/turn times which means that the time from start to finish will become even more efficient as time goes on, which is great news!

Lucy Stephens, REALTOR^®

Certified Negotiation Expert (CNE)
Master Short Sale Consultant (MSSC)
Direct 623-695-9189   Fax 866-200-1411