Short Sale: Pitfalls & Solutions
Pitfall: Your Property is Priced Incorrectly
Solution: Agent Providing Understanding and Transparency.
Pitfall: Your Short Sale Proposal is Incomplete. A most frequent reason for rejection of short sale proposal. Many do not understand the process for short sales and what the lender seeks.
Solution: Understand All Aspects of the Process
Choose the right agent to represent you.
Pitfall: There has been Inadequate Follow-up and Communication
Improper communication with all parties can delay the process, which might result in running out of time and a foreclosure.
Solution: Select an Experienced Agent.
The right agent knows exactly how to follow up to ensure that your lender’s issues are addressed in a timely manner, and will make certain you do not have unnecessary delays.
Pitfall: There Isn’t Enough Time
Understanding foreclosure laws is vital. In addition, the agent has to know how to communicate with your lender. Certain information can be provided to lenders to postpone your foreclosure for weeks or months in order to negotiate a sale.
Solution: Provide Accurate and Useful Information
Make sure you provide your agent accurate information as to exactly how many payments you have missed and any correspondence you have received from your lender. This will allow your agent to understand your situation and work to improve it.
Pitfall: Your Deal is Not Submitted Properly
If you do not follow the directions you receive for submission, then you are expecting an over-worked, under-staffed department to go out of their way to handle your file. There is very little likelihood of this situation working out in your favor.
Solution: Follow Instructions Closely
If you are instructed to fax your file, fax it and send a backup copy in the mail. If you are instructed to mail two copies, mail two copies. When you reach the point of having a contract, all your information, and a completed proposal, you do not want your deal to fall apart because no one sees it.
Pitfall: The Buyer’s Offer is Too Low
Many agents will encourage you to submit any offer that comes in. The reality is that a short sale is not the same as a fire sale. In order to have a legitimate chance of getting your deal approved, you must have an offer that is more attractive to the lender than a foreclosure.
Solution: Proper Negotiation
The right agent will work with you to properly negotiate any offer that you receive to get ‘highest and best’ from each potential buyer. This ensures you are presenting the best possible solution to your lender.
Pitfall: The Buyer’s Contract is Not Strong Enough
Especially in our current economic climate, willingness to make an offer on a property does not mean that a buyer is truly qualified to purchase. The reality is that buyers need to be preapproved for financing, closing funds must be verified, and their ability to buy needs to be confirmed.
Solution: An Agent Familiar with Qualifying Buyers
Your agent should be familiar with what must be verified in order to qualify a buyer to submit an offer on your property. Otherwise, these offers may have little chance of closing. Don’t risk this process with an uneducated agent who does not appreciate this aspect of short sales.
In conclusion, While these pitfalls may seem troublesome, the right agent can help you navigate your way to a successful closing. Don’t endanger your financial future and the potential sale of your home with an agent who does not fully understand the process. CDPE-designated agents have completed extensive training in the short sale process, and in assisting struggling homeowners who need real solutions. They understand what you are going through, and are here to serve and help save your family’s interests.
~Kirill Gorbounov, MBA, REALTOR®, CDPE, SRES, GREEN, e-PRO.
cell: (571) 276-0986; mailto: KirillRealtor@Yahoo.com
~Elena Gorbounova, LL.M., REALTOR®, Associate BROKER, GRI, ABR, ASP.
cell: (703) 625-7888; mailto: ElenaDeibes@aol.com
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RE/MAX Allegiance; 6226 Old Dominion Dr., Mclean, VA 22101
Office: 703-237-9500; E-Fax: 1866-821-0782
MBA – Masters in Business Administration
CDPE – Certified Distressed Property Expert (short sales)
SRES – Senior Real Estate Specialist
GREEN – Green Real Estate Principles
e-PRO – Certified Internet/Tech.
ABR – Accredited Buyer Representative
ASP – Accredited Staging Professional ™
GRI – Graduate Realtor Institute
LLM – Legal Law in Masters
Selling & buying in Northern Virginia: Fairfax, Arlington, Alexandria, Falls Church, Annandale, Springfield, Burke, McLean, Skyline Square, Skyline House, Skyline Plaza.