5 Steps towards a Successful Short Sale

My 5 steps towards a successful short sale in Nevada

The evaluation of a short sale is made up of three components: the hardship, the property value, and the bank’s profit.

A short sale is not a new loss mitigation strategy for the bank. HUD’s pre-foreclosure program has been around since the 90’s. And even though short sales are in overdrive today, the basics of the evaluation process haven’t changed that much. The lenders are still evaluating the hardship, the property value and their profit margins. And completing a short sale continues to be slow, laborious and delicate.

What continues to change in the world of short sales are the details. For example, many things that were were acceptable in 2010, are no longer acceptable:

  1. The HAFA program no longer accepts a seller into their short sale program if they have purchased a home in the last 12 months.
  2. Banks no longer accept a trust as buyer on a transaction.

Year after year, we see the banks continuing to fine tune the short sale process especially in the efforts to prevent contrived defaults and fraud.

Since the qualification cheese keeps moving, it is imperative to meet with a Las Vegas short sale agent as soon as possible if you are considering short selling your property.

In the meantime, here are my 5 STEPS TOWARDS A SUCCESSFUL SHORT SALE:

    What is my hardship?
    Can be verified?
    Do I make less money than I spend? See acceptable hardship reasons;
    I know, it sounds odd to “pre-qualify” for a short sale but call a Las Vegas short sale specialist (702-675-8211) and have them pre-qualify you over the phone. Think of it this way: Remember how you had to qualify for a mortgage? Pre-qualifing for a short sale means you have all the conditions present to NOT qualify for a loan. Schedule a telephone or private, in person consultation with a Las Vegas short sale agent to review your taxes, bank statements and paystubs. Do not skip this step! Make sure your Las Vegas short sale agent physically reviews all your documents before putting your house up for sale;
  3. KEEP YOUR HOUSE IN MUSEUM CONDITION IF POSSIBLE: Make sure your home is always in tip-top shape and follow all of your real estate agent’s advice in how to stage it. They are attempting to obtain as much money as possible from a buyer to payoff your outstanding mortgage balance. Follow their advice exactly.
  4. TURN IN PAPERWORK BEFORE THEY ASK FOR IT. After you have obtained an offer on your house and your agent begins the short sale process, the bank will continue to ask you for updated paystubs/income documentation, current bank statements and tax returns. Collect these at the end of every month (year) and fax them into your agent before they ask for it. If the bank request additional documentation for their file and they give 7 days to turn it in, don’t wait until day 7, if you can help it. Get it to them the next day. I recommend you invest $50 in a fax machine for your home and use it fax back any paperwork they ask for immediately. Keep the process moving along and stress free. Your sanity is so important. Happy people have an easier time in their jobs, at home and in their social life.
  5. READ EVERYTHING. Read everything and make sure an attorney reads your short sale approval letter. A successful short sale means:
    • Your Las Vegas short sale agent procured you a willing/able buyer;
    • The lender approved of your hardship and issued you an approval letter that completely settles your debt in a manner you can afford and in a way that is in your best interests;
    • The escrow closes.

For more information about how the short sale process works, or about any other foreclosure alternatives you may qualify for, call me today at 702-675-8211. I can help lift the burden that the risk foreclosure brings. Together, we can put a plan in place to help you breathe a little easier.

Who qualifies for a short sale in Nevada?