Realizing that you may need to sell your home as a short sale can be stressful. You will likely have many questions. What will happen to your credit score and ability to get a mortgage? What if your home doesn’t sell and goes into foreclosure instead? How is the process different than a normal house sale? These questions are all reasonable and warranted. The short sale process is complex and nuanced so it is important to hire a Realtor that is knowledgeable and experienced in short sales.
Gray Fox Real Estate’s Designated Broker and Owner, Polly Cockrill, is a Certified Short Sale and Foreclosure Resource.
What does that mean?
A Short Sale and Foreclosure Resource is a Realtor who has completed specific training and education to work on short sale and foreclosure transactions. The training is important because it increases the chances that your short sale is going to be successful.
The Short Sale and Foreclosure Resource course is an introduction to the laws and banking regulations that direct short sale transactions. In addition to that, Polly has a deep understanding of the law and the short sale process from working at Shapiro & Morely in Portland during the Foreclosure Crisis. Polly is not an attorney, and cannot provide legal advice, but understanding what the attorneys are doing, why, and most importantly, when, is a huge advantage to making sure your short sale succeeds.
Polly has purchased four investment properties, and some of them were short sales. She has represented Sellers who found themselves forced to apply for a short sale. She has experience working on both sides of the real estate transaction.
According to Polly:
Can you get a good deal when you buy a short sale?
“The bank is going to rely on the broker’s price opinion or “appraisal”. Banks are hoping for buyers to pay the appraised price, or more. There is not a lot of wiggle room on either side when it comes to price. A common misconception is that buyers can get a really great deal when purchasing a short sale, but that is not always true. Banks are rarely allowed to take less than the broker’s appraisal. The price is out of the control of the buyer or seller because it is determined by a third party whose main focus is valuing the property”.
What are the differences between short sale sellers and buyers?
“A short sale for a seller is an extremely complex and time consuming process with no guarantee of the outcome. The house could be foreclosed upon even after attempting a short sale. From a buyer’s perspective, if they are willing to pay what the bank wants, then it’s normally a very easy transaction. Also, more often than not banks prefer cash over financed buyers”.
A few facts about Short Sales:
Short sales are considered distressed properties, “that are available for sale because of financial hardship on the part of the current or previous owner.”(National Association of Realtors).
In a short sale, the owners no longer have equity in their home because they are behind on their payments and cannot afford to pay them. In a short sale, the holder of the mortgage agrees to sell the house “short”, or for less than what is needed to pay off all debt connected to the property.