Grand Rapids, Michigan
In a real estate market in which just under 1 out of 2 homes which are actually SOLD are Short Sales or Foreclosures, more home sellers in the Grand Rapids, Michigan area are inquiring about if a Short Sale may be a viable path to consider.
It is no secret that there has been a precipitous slide in home prices over the past year. This coupled with the sub-prime mortgage mess has placed some home owners into a situation in which the Value of their home is LESS than what they currently owe on their mortgage payment. In some cases…way less. As a result, some home owners are bringing thousands of dollars to the closing table to make up the difference owed to the bank.
But what can you do if you don’t have Thousands of Extra Dollars sitting in a bank, savings or retirement account? Unfortunately, this is a question, many home owners are asking. Individuals who have to move due to a job loss, illness or divorce. Individuals who can no longer afford to stay in the home they bought.
Short Sales are complex real estate transactions. Although banks do not want to ‘own’ real estate, they are often less than cooperative in situations in which the debt obligation to them will not be fulfilled. To make the case to the bank about the specifics of your situation and your intention to try to fulfill your obligations to the best of your ability, it is wise to hire a real estate agent who has successfully completed Short Sale negotiations and who understands the intricacies of the process.
There are several stages within a Short Sale Negotiation. The first determination is to gain a comprehensive understanding of your specific situation. Questions which need to be answered include your payment history and a complete analysis of your financial resources; including a detailed rendering of any extenuating circumstances which may impact your ability to repay your obligation.
The home in question must also be verified through a market analysis to substantiate the loss in Value. This will often include not just a real estate broker evaluation but also an independent appraisal or Broker Price Analysis from another source. Then the home must be marketed aggressively, as NOTHING proceeds forward until you obtain a viable buyer.
Once an offer is tendered, the real ‘fun’ begins. In some instances, we have encountered Loss Mitigation Specialists assigned to handle up to several hundred files at a time. The pressure on them is enormous and they often fail to answer their phones or respond to any attempts of communication. It is here that hiring the RIGHT agent makes all the difference in the world.
It is important that your real estate agent/broker possess the following qualities when negotiating a Short Sale.
1. They must UNDERSTAND the process…knowledge of the different aspects of foreclosure & short sale
2. They must KNOW how to price your home to actually SELL
3. They should have a good INTERNET presence to attract the largest pool of buyers
4. They must be PERSISTENT in their negotiation efforts
5. They should have an inherent grasp of the DETAILS to ensure that all parties remain informed
6. Your agent must be DETERMINED to represent your best interest
Successful Negotiation of Short Sales is a mandatory element of the training which the agents of Audu Real Estate receive during their 1-2 year apprenticeship. Audu Real Estate has successfully short sales on behalf of our clients.
We strive to conduct our negotiations in a way which honors the dignity of those involved and protects their privacy. If you’d like additional information or a private consultation regarding your Short Sale options, please contact us at: firstname.lastname@example.org.