Real Estate for Real People

What does the BRANG TEAM do to get my short sale  approved?

A short sale in real estate is not always a pleasant  transaction.

There are many ways to sell your home, but most people are under the impression that selling your property via short sale will destroy your credit, embarrasses your family and strip you of your dignity – and all that couldn’t be further from the truth.  While it is an emotional and sometimes humbling decision, The Brang Team handles this sensitive transaction with the respect and assistance that every homeowner deserves.  So if you are a homeowner who can no longer afford to  keep mortgage payments current, there are alternatives to bankruptcy or  foreclosure proceedings, and one those options is called a “short  sale.”  Read on…

More than half of our sales over the past few years  are short sales. That’s how prominent short sales have become.

When lenders agree to do a short sale in real estate, it means the lender is accepting less than the  total amount due. Not all lenders will accept short sales or discounted payoffs,  especially if it would make more financial sense to foreclose; moreover, not all  sellers nor all properties qualify for short sales.

If you are considering selling a short sale, there could be drawbacks and as a real Estate Broker, I am not licensed as  a lawyer nor a CPA and cannot advise on those consequences.  For your protection, I  suggest that all borrowers:

• Obtain legal  advice from a competent real estate lawyer
• Call an  accountant to discuss short sale tax ramifications.

Although all lenders have varying requirements and  may demand that a borrower submit a wide array of documentation, the following  steps will give you a pretty good idea of what to expect and the BRANG TEAM will  do this for you:

• Call the  Lender: We may need to make a half-dozen phone calls before you find the  person responsible for handling short sales. We will not talk to the “real  estate short sale” or “work out” department, We will get the supervisor’s name,  the name of the individual capable of making a decision.
• Submit  Letter of Authorization:  Lenders typically do not want to disclose any of  your personal information without written authorization to do so. We will  receive better cooperation if you write a letter to the lender giving the lender  permission to talk with those specific interested parties about your loan.
• Preliminary Net Sheet: This is an estimated  closing statement that shows the sales price you expect to receive and all the  costs of sale, unpaid loan balances, outstanding payments due and late fees,  including real estate commissions.
• Hardship  Letter: This statement of facts describes how you  got into this financial bind and makes a plea to the lender to accept less than  full payment. Lenders are not inhumane and can understand if you lost your job,  were hospitalized or any other life altering situation, but lenders are not  particularly empathetic to situations involving dishonesty or criminal  behavior.
• Proof of  Income and Assets: It is best to be truthful and honest about your  financial situation and disclose assets. Lenders will want to know if you have  savings accounts, money market accounts, stocks or bonds, negotiable  instruments, cash or other real estate or anything of tangible value. Lenders  are not in the charity business and often require assurance that the debtor  cannot pay back any of the debt that it is forgiving.
• Copies of  Bank Statements: If your bank statements reflect unaccountable deposits,  large cash withdrawals or an unusual number of checks, it’s probably a good idea  to explain each of those line items to the lender. In addition, the lender might  want you to account for each and every deposit so it can determine whether  deposits will continue.
• Comparative Market Analysis: Sometimes  markets decline and property values fall. If this is part of the reason that you  cannot sell your home for enough to pay off the lender, this fact should be  substantiated for the lender through a comparative market analysis (CMA). We will utilize this to show prices of similar homes: Active on the market; Pending Sales; Sold from the Past 6 Months.
• Purchase  Agreement & Listing Agreement: When you reach an agreement to sell with a  prospective purchaser, the lender will want a copy of the offer, along with a  copy of your listing agreement.