The following bullet points outline the advantages of a short sale, and why they succeed or fail.  

These are in general terms and can vary with each lender and each sale.

Advantages for the Lender to Short Sale

•   Saves them time and money
•   No need to hire an asset management company for  an REO property
•   Get bad debt off their financial statements quicker
•   Shorter time frame to sell and close escrow
•   Avoids expensive foreclosure costs and attorney fees
•   Avoids eviction cost and related expenses
•   Avoids further loss due to declining property values
•   Avoids rehab expense and other marketing cost to resell the property
•   Avoids vandalism and theft expense typical to vacant homes

Advantages for a Buyer of a Short Sale property vs. Bank Owned-(REO)

•   Property is maintained in its current condition
•   Sellers disclose material facts known to the property
•   Buyer doesn’t need to have property de-winterized for inspections
•   Less chance of damage from vandalism or theft
•   Short Sale Lender may pay for Health and safety repairs called out by Appraiser
•   Buyer end up with property at a discounted or fair market price

Advantages for the Community & Neighborhood to Short Sale

•   Avoids blighted homes with dead lawns usually associated with foreclosures
•   Avoids unsightly paperwork being posted and left on the home or windows
•   Avoids excessive crime and vandalism associated with foreclosed homes
•   Neighbors don’t have to deal with or see vacant homes
•   Better protects value of the Neighborhood

When is a Short Sale More Likely to Succeed?

•   Having experienced “Certified Short Sale Specialist” (us) helping and talking to the lender on their behalf
•   Provide all the lender required documentation in a timely fashion
•   Provide a well written letter explaining the hardship
•   Not waiting too long before listing the property
•   The property is in a marketable condition for the area
•   List price should beat current value for condition
•   First lien holder receives 50% or more of what’s owed
•   Second lien holder receives 1-5%
•   Best if first and second lien holder are with the same lender
•   Ample time to market the property, negotiate with lender, close escrow before foreclosure

When is a Short Sale Unlikely to Succeed?

•   Homeowner doesn’t provide a complete short sale package in the time needed
•   If the homeowner files or is in bankruptcy
•   If the homeowner has taken a recent loan against the property
•   It the homeowner has a recent refinance with cash out
•   It there is outstanding judgment or liens clouding the title
•   If a “Notice of Sale” date has been already posted on the property

About Us:  We are an award winning team here at Prudential Troth Realtor, Experienced and Certified Short Sale Specialist.  We don’t use third party negotiators or have you talking with office staff that can’t answer your questions.  Our team is available 7 days a week for help and your personal information is kept confidential.  With years of experience and proven results, all you need to do is contact us for Free Help.  Call 661-810-2163 or 661-810-2162