The approval timeline for short sales… this depends on the method being used on the transaction and which side of the transaction you are on. For example, if you are representing a buyer and we are already involved and working with the lender, the timeline to get to closing can be reduced by as much as several months vs. “regular” short sale transactions in which you bring a buyer and the file doesn’t get opened with the foreclosing lender until they receive your offer. If you are the listing agent, most-likely a standard short sale timeline will apply, 60-90 days, again depending on the complexity of the property (number of liens, cooperative spirit of the homeowner, etc.). In either case, once the short sale is approved, usually the standard 30 days is allowed to close.
How we get paid… this depends on the transaction.
In some transactions, we earn our income from the transaction itself, creating equity where is none with the short sale lender, buying the property for rehab, hold, or re-sale. This strategy also has the added benefits. By being able to submit a legitimate offer on a property, that may not otherwise have one, enables the short sale process to begin. The lender orders their valuation and we engage them in a conversation about what the investor needs to approve the transaction. If we can get our terms met, we’ll close. If not, at least now we have some very good information about what is needed for approval and can help you be more accurate in your marketing. When a new buyer comes into play, we simply show them the equitable value of our work and charge them a fee that is on the HUD at closing as a closing cost.
The seller avoids foreclosure, the Realtors get their commission, and we get paid for our work. It’s a WIN-WIN-WIN.
Guidelines for Potential Clients:
Your sellers must be at least 30 days late and unable to make any future payments. (We have completed short sales in which the owner is current with their payment, however these are rare transactions. If you are unsure about the nature of your transaction, call us or fill out the form at the bottom of the either the Listing or Buyer’s Agent pages.)
If your sellers have plans to file or be actively in bankruptcy, that’s ok, just let us know.
Your sellers are motivated and willing to work with us throughout the length of the negotiation.
At a minimum, we need to be in contact with a seller at least 10 days before the foreclosure sale, we prefer 14 days, and if less than 10 days prior to the foreclosure sale date, we charge a 100% refundable fee of $400 to the Seller. If we cannot stop the sale, we will refund the money… period. As always in foreclosures, time is of the essence.
Any potential buyer planning to submit an offer must be aware of our involvement and agree to our fee as part of the transaction….IF that transaction applies in this way.
Contracts will not be contingent on a different or pending sale and/or any future closings, 30 days from the lender(s) date of acceptance.
Contracts cannot be assignable in any manner.
