The real estate market in West Michigan has been impacted by the rise in Foreclosures and Short Sales. Short Sale transactions are some of the most challenging transactions to process and require tremendous amounts of energy, follow-through and sheer tenacity to bring to successful conclusion. Today’s blog post reflects the experience of REALTOR, Donna Schimke and tells the story of how she was able to secure a Short Sale for her clients.
Donna’s background prior to real estate included working as a Buyer Specialist for Autocam and as a Property Management Specialist for Chase. Here’s the story in her own words…
In August of 2010 I was sat down with a young couple who were upside down in their mortgage like many people are now. When they bought this 2 bedroom house in 2002, they were new to Grand Rapids and did not know what the future would hold. As their family grew, and the neighborhood home values declined they realized that they needed to sell their home and move due to safety issues.
They were referred to me by a family member to sell their home. I did the research of the area and found that I needed to list the home for less of what they still owed on the home, meaning it would be a short sale. A Short Sale is when you are selling your home for less than what you owe on it, and will ultimately need bank approval.
We had 5 showings on the home and an offer was accepted in January 2011.
The process of a short sale can be very tedious and may take months to close. Once an offer is accepted and the seller provides a hardship packet, (bank statements, financials, and hardship letter) it is submitted to the bank that holds the mortgage. Once the bank receives the packet it is assigned to a negotiator which could take several months.
After a month, I started making the phone calls to the bank to make sure that the bank was working on the file. I kept in almost weekly contact with the buyers, so they would know we were moving forward. In October, 10 months after I started, I received a call from the bank and they wanted to know if an offer had been submitted and I said that “we have had an offer in since Jan 2011”. Well that got the ball finally rolling and we closed within 10 days of the phone call. We finally closed on October 14th, 2011. The end of the redemption period for the home was Nov 20 2011.
If you are contemplating selling your home or know someone else considering selling their home, please contact me, I can help. Audu Real Estate has a short sale success rate above 80%, which is higher than the industry standard of 15%.
Licensed Real Estate Agent, Short Sale Specialist