Greg Cowart on Zillow
Greg Cowart - Mortgage Broker or Lender at The Securus Group
Greg Cowart - Roseville Loan Guy

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The Long & Short

In today’s “real world” a short sail should be a no-brainer. A win-win for all parties. Allowing the seller to avoid foreclosure, the buyer to get a great deal on the sale of the home, and the bank to get out of the deal without the considerable loss and expense of foreclosure proceedings. While the process is getting both better and easier we’re still not quite where we need to be. Here are some things to remember in doing it right…


Have your agent do some research. Make sure the current owner’s agent is experienced with short sales. Less than half of short sales result in closed escrows so┬áit’s important to make sure you are working with the right short sale seller or you could just be wasting a whole lot of time, possibly letting other opportunities pass while you wait.

Listen to your agent when he/she tells you what an appropriate offer is. The severe lowball offer just isn’t going to fly. Local short sale experts say to make an offer no less than 10% below current market value. And make sure to GET PROQUALIFIED before you make your offer (this goes for short sales and any other real estate transaction).

Patience is a virtue. Especially important when dealing with banks on short sales. We already talked about how important it is to work with a listing agent that is experienced with short sales but even if you do this is going to take some time. Most of my clients end up waiting a minimum of 3 weeks, up to 3 months, for the bank to get back to them on their offer. A good buyers agent will also put in a clause allowing the buyer to search for and bid on other homes while they wait. There is no reason to miss a great opportunity just because the banks are months behind of short sale offers…


Be ready to provide evidence of a hardship before going to your lender with a short sale request. It’s more than likely that the bank will not approve your request just because you are upside down on your mortgage. Be able to support some sort of financial hardship. The most common would be the loss of a job, medical bills, death in the family, or divorce.

Get started in conversation with your lender ASAP. Once you have made the decision to try and sell you home by way of short sale let them know! This can possible shorten the process by months and you may end up one of the lucky ones knowing what the bank will accept in short sale before you actually get an offer on the house.

Share the pain. Even if it’s just a little. Odds are the bank is taking a bath costing them tens of thousands of dollars. Sweeten the pot for them. Maybe offer them a couple grand on top of the sale. If it is what it takes to get you out of a foreclosure or a loan on a house worth tens of thousands of dollars more than the house is worth, it just might be worth it.

That’s it for now….


Greg :: The Roseville Loan Expert

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