What Is A Short Sale?
A short sale is when a homeowner who can no longer afford their home and owe more than the house is worth get the lien holder to agree to accept less than what is owed when the house sells. They were very common a couple of years ago when people who had bought homes at the height of the housing market tried to sell their homes after the real estate crash and the value of their homes had plummeted. With only a few years of paying the mortgage these homeowners had not built up enough equity in their homes to match the now much lower value of the home.
Below are the Short Sale Homes for Sale in Clayton
Many home buyers in Clayton and the Triangle took advantage of no money down loans and adjustable interest rates which were wildly popular back in the day and so they often borrowed more than the house was even worth to begin with. Sometimes a life event caused folks to have to sell their home even when they had not intended on moving. Health issues, job transfers, divorce and any number of other circumstances put people in the tough predicament of having to sell a house while owing more to the bank than the house was worth.
Why Would The Bank Do A Short Sale?
The reason a bank would do a short sale is that the alternative is often a lengthy and costly foreclosure process. Once it becomes obvious that a home owner can no longer pay the mortgage on the home and the home is valued at less than what is owed on it, the bank must decide whether to cut their losses and do a short sale or foreclose on the home. The word short in “short sale” has absolutely nothing to do with the amount of time it takes to do a short sale! It means the deficiency in what the bank is owed and what they will receive when the house sells. It is hard to under estimate the complicated short sale process and procedures needed to complete a short sale on a home and it is not a road to take without some experienced help. Just getting someone at the bank to return a phone call can take weeks if you don’t know what you are doing.
Do You Qualify To Do A Short Sale?
Not everyone can do a short sale, there has to be a financial hardship that proves you can no longer make the payments. You must not have the cash or assets needed to pay off the mortgage. Basically you must be able to prove to the bank that you can’t afford the house anymore and you can’t sell it for what is owed plus all the costs associated with the sale. In order to do that you’ll need to get a lot of paperwork together that the bank will ask for. Tax returns, bank statements, pay stubs, anything and everything that has any connection with your finances and expenses can be asked for.
How Long Does A Short Sale Take?
The short sale process can be daunting and frustrating or it can be fairly straightforward, one thing is for sure and that is that the process does not happen quickly. If everyone knows ahead of time that it is a long process, that there may be weeks where there is no contact from the bank. That you might get asked for copies of documents more than once, or that dates will expire and you may need to get extensions. Most banks won’t accept electronic signatures, so if an agent is used to doing contracts electronically, they’ll need to go back to the old school method.
Below are all the Foreclosures in Clayton at the moment.
The biggest problem is getting the buyer to understand the short sale process completely, the sellers aren’t going anywhere so they have no choice. Often times a short sale is almost ready to be approved and the buyers will walk. The key is to hire someone who knows about doing short sales, has a proven track record in doing short sales and can get an approval in as short a time frame as possible.
Need To Do A Short Sale In Clayton, NC
If you are faced with doing a short sale in Clayton or Raleigh, my advise is to use a short sale attorney who specializes in working with banks on getting short sales approved in a little time as possible. When you use an attorney they should handle all negotiations with the bank which is half the battle. It is still very important for the homeowner faced with doing a short sale to be involved and understand the process, ask questions and be aware of all the implications with regards to taxes, credit history etc.
A Successful Short Sale Completed For Clients
We closed on a short sale for my clients who used the attorney that does short sales. The attorney’s staff prepared all the paperwork my clients needed for the bank. They deal with this bank and many others countless times so they know what they are doing. After doing the market research to determine what to list the home for, my clients agreed to list it, unfortunately it had to be priced almost $20,000 below what it was when they bought.
Within a few weeks we had multiple offers and accepted the best one, and the attorney went to work. I want to point out, that my job as a real estate agent is to come up with a list price that is based on recent history of similar sales of comparable homes. Market the home just as I would with all my listings and help my clients negotiate the best outcome for them. Once we have agreed to a sale price the attorney submits the offer to the bank.
The Problem With Buyers Of Short Sales
It is very common with short sales for the buyer to stay in the deal for a month or so and then get antsy and start looking around at other homes. Once this happens there is not a lot the buyers agent can do to keep them in the deal and they sometimes terminate the contract and move on. So it is really important to explain the short sale process to the buyers agent and tell them that before they present an offer to advise their clients if they have any reservations about their commitment to the process.
Set the expectations and err on the side of caution, don’t tell them 45 days if its going to be 60 days. Keep communicating with all parties, even if there is no news, it is better to let everyone know that you are working on it as opposed to someone speculating that nothing is being done, which happens when they don’t hear anything. Short sales do get done and when they do it is a tremendous relief to the seller and allows them to get on with their lives and eventually regain their credit scores and purchase another home in the future.
If you think you need to do a short sale on your home in Clayton, I might be able to help. Send me an email to email@example.com or call me David at (919) 601-2268