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Option 2: Short Sale
Remember One Thing: Your Lender DOES NOT Want To Own Your Home! Don’t bury your head in the sand and “give” your house back to your lender. THERE ARE OTHER OPTIONS!
Why Short Sell? Compare Short Sale's Many Advantages...| The Issues | Foreclosure's Consequences | Short-Sale Advantages |
| Credit History | Foreclosure will remain as a public record on a person’s credit history for 10 years or more. | A short sale is not reported on your credit history. In most cases a loan is typically reported ‘paid in full, settled’ or ‘paid as negotiated’. |
| Credit Score | Score may be lowered anywhere from 250 to over 300 points. Typically will affect score for over 3 years. | Short sale may lower the score as little as 50 points if all other payments are being made. A short sale’s affect can be a brief as 12 to 18 months. |
| Future Fannie Mae Loan - Primary and Investment | A homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae primary mortgage for a period of 5 years. Investment mortgages for 7 years. | A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years. |
| Employment - Current And Future |
A foreclosure can be grounds for immediate termination, and is one of the most detrimental credit items an applicant can have and in most cases will challenge employment. | A short sale is not reported on a credit report and is therefore not a challenge to employment. |
| Deficiency Judgment | In 100% of foreclosures (except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgment. | In some successful short sales it is possible to convince the lender to give up the right to pursuit a deficiency judgment against the homeowner. |
| Deficiency Judgment (Amount) | In a foreclosure the home will have to go through an REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment. | In a properly managed short sale the home is sold at a price that should be close to market value and in almost all cases will be better than an REO sale resulting in a lower deficiency. |
Our company is unique when compared to other Real Estate Agents and/or Brokers in the North Phoenix and Scottsdale Markets.
In light of today’s market, Real Estate Agents and Brokers are hungry for business, and will do anything to get listings (including taking on short sale listings with little, if any, knowledge of how to handle them). The problem is, 99% of them have NO CLUE what it takes to bring a short sale transaction to fruition (or a sale, in this case). Our team of Certified Distressed Property Experts (CDPE) have not only attended training seminars for our certification, but we have had numerous dealings with clients that are facing the same types of issues that you are facing today.
In addition, our listings include the following (ask the other agents if they do this for you):
1. Listing the property on the Arizona Regional Multiple Listing Service (ARMLS), with several photos of your home.
2. A Virtual Tour of your home (see www.tourfactory.com for the company that we use for our virtual tours).
3. Listing on Realtor.com (The World’s Largest Real Estate Listing website)
4. Your home will be listed on 40+ Real Estate Websites, including Craigslist and Backpage.com.
5. Your home will be accessible by ARMLS lockbox
6. Professionally installed sign will be placed in your front yard
7. Open Houses, as needed
Remember, we
don’t get paid until we sell your
house. We do everything in our power to get it sold at the
highest price
that the market will allow!
One of the biggest (if not the biggest) problems that most Agents/Brokers face with Short Sale Listings is getting the Lender to respond to their efforts. At Summit Home Consultants, we pride ourselves on our motto: “Nothing In The World Can Take The Place Of Persistence”. You see, in the world of Short Sales, the secret involves two Critical Tasks:
1. Submitting the necessary information in a timely manner so that the lender can make a quick, informed decision (this is where most agents don’t have a clue, and why you hear so much about short sale listings that fail).
2. Persistence in communicating with the lender in order to get the deal done. Quite simply, most agents “give up”. We are “politely persistent”, with both the lender and the Buyer’s Agent.
HOW
ARE WE DIFFERENT?
We have a time-honored system in place that accomplishes these two goals. When we get an offer on your home, our package includes 60+ pages of information for your lender to review, everything from a hardship letter, to bank statements, to comparables in your neighborhood. This is crucial, as most Short Sales go on for extended periods of time because the Listing Agent did not do their job in providing the bank with the required justification to make a rational decision. Secondly, persistence in seeing the deal through to the closing is extremely critical. Most agents give up, saying “The bank won’t return my calls”, or “I can’t figure out who to talk to”. We don’t give up. We push and push until we find the decision-maker for your property. Remember, we don’t get paid unless we get your property sold.
That brings up our last topic. In a typical transaction, our team will put in over 50 hours of work (on average) to get your home sold. Who pays us for our efforts? Not You! In our listing agreement, we ask that the lender pays our commission, but only as a result of a successful sale. You pay NOTHING up front, and you pay NOTHING at the Close of Escrow. It’s that simple!
CALL US (602) 957-1583
Return home from Scottsdale Short Sales
The above
brokerage assumes no responsibility nor guarantees the accuracy of this
document and is not engaged in the practice of law nor gives legal
advice. It is strongly recommended that you seek appropriate
professional counsel regarding your rights as a homeowner. © Copyright
2009 Summit HomeConsultants. Scottsdale, Arizona.