I recently wrote an article about closing another short sale. Knowing that most buyers and
sellers don’t understand the steps it takes to close a short sale, I felt the need to explain more about the procedure and what to expect.Specializing in Springfield Missouri short sales and bank foreclosures was just another way to improve my business. I didn’t know it would be so difficult to help sellers communicate with lenders to sell their property to potential buyers.
Many sellers in the Springfield Mo real estate market are slowly getting behind in their payments and facing the fact that they will lose their home and destroy their once good credit. This is a stressful time, which sometimes ends with the family having to rent, relocate to other parts of the country or even divorce.
Purchasing a home in the past few years, with no money down and adding the closing costs to the purchase price of the home, allowed buyers to fulfill their dreams of owning their own home, however, they were unable to budget for any unforeseen problems. Once the cycle begins, it quickly accelerates to the point of no return. Most sellers do not know how to get help when they first realize they are spending more than they can make.
Trying to sell their home quickly in today’s market, the home must then be sold for less than they owe, including past due payments, late charges and penalties. Contacting the lender before the foreclosure process starts, will allow the lender to send a “short sale package” to negotiate and work with the seller for a short sale. Among the information required is:
Hardship Letter
Two years of financial statements
Current bank statements for all open and closed accounts for at least 2 years
Any documentation that the lender will require – including a letter to the lender giving permission for the realtor to help in negotiating the short sale.
Tax Returns
The procedure to find the right “negotiator” to give the approval to agree on the final sales price takes time. The seller and buyer must know the transaction can not happen over night. In the case of my last short sale, keeping the buyer from withdrawing their offer and the realtor pursuing the lender was stressful for all parties. We were able to finalize the transaction after 2 months.
If the unpaid balance in not “forgiven” or negotiated before closing, the seller must know that the bank can come back and collect any portion of the unpaid balance, late fees, attorney fees, or any other fee due.
If you are facing the possibility that you will not be able to make up your payments, contact your loan company as soon as possible. Negotiating to sell your home for a lower price than other homes of comparable value will actually save the bank more than they may lose if they end up foreclosing. Contact a Springfield Realtor that is familiar with bank foreclosures and short sales.
Kay Van Kampen is a local Realtor serving Springfield, Ozark, Nixa, Rogersville, Republic and surrounding areas in Missouri. She is ready and available to help you with all your Springfield Mo real estate needs. To contact her go to http://www.kayvankampen.com/.
