Nashville Short Sales

Nationwide, Only 23% of Short Sales Close, The Rest Go Into Foreclosure

A NASHVILLE SHORT SALE REALTOR
IS STANDING BY FOR YOUR CALL!

Nashville Tennessee Short Sales

Nationwide, only 23% of short sales close, the rest go into foreclosure.  Darin’s closing rate is over 90%!  It makes a difference to go with the expert. 

Here is how we work with short sales that is different from the traditional method:

Short sale: When a seller or seller's agent negotiates with the lender to take a shortage on what is owed to them in an effort to sell the home. For example, when a bank is owed $200,000, but the seller cannot sell the home for anything more than $190,000, and the seller does not have the financial wherewithal to pay the difference to close on the house, the seller and / or agent ask the bank to take the loss.

Why would the bank take a loss as referenced above? They have to fear that if they do not, the seller will unfortunately have to let the home foreclose because they can no longer afford the monthly payment on the home. Typically, on a short sale, the bank will recoup approximately 80% of what is owed to them, but if the home forecloses, the bank will only recoup approximately 40% of what is owed to them. The choice seems obvious for the bank to take a short sale, but, it's not that easy. As many of you have heard, it can be a nightmare attempting to get a short sale approved, and that's where we step in to ensure a smooth short sale process for sellers and seller's real estate agents.

Traditionally, an agent or seller will begin a short sale process by qualifying the home. Once it is qualified that the bank "should" accept a short sale on it, the next step it to establish a hardship. The bank has to see that if they do not work together with the seller to create a workable solution, they seller will ultimately be heading towards foreclosure, and everyone will lose.

The next step in the traditional short sale process is for the agent to list the home and determine a price. THIS IS WHERE PROBLEMS BEGIN! The agent is not typically instructed by the bank what price to list the home. If the agent asks the bank, their typical reply is "bring us a contract and we will see if it works". Well, that puts the agent in a difficult position because they are not even sure if a full list price offer will get approved by the bank! The bank stops work on the file until an offer is submittted, and once the bank does get the offer, it then takes 1 - 6 months to get a response (depending on which bank it is and how many mortgages are on the property). So, often times the agent will get in an offer, submit it to the bank, wait 1-6 months for an acceptance or counter offer, and expect that the buyer will still be waiting to purchase the home. Most buyers will walk away due to the time frame and uncertainty.

In the event the offer does work out, and the buyer has waited around, the agent and seller can close the deal. IT CAN HAPPEN, but statistically speaking, only 23% of short sale contracts actually close. So, traditionally, the expectations of short sales closing are relatively low.

Some agents have become specialized in working with short sales, taken courses and received designations as certified short sale experts. These agents are most likely closing higher than 23% of their short sales with their sellers because they have been proactive in learning how to effectively close short sales. Most agents, however, deal with one or two short sales and vow to never do it again.

At the end of the process, often times the sellers are left with with a promissory note to pay back their bank(s) the difference in what they lost, especially in the luxury market where the bank(s) losses are very significant.

Nashville Short Sale Expert

READ ON TO LEARN HOW WE CAN ELIMINATE PROMISSORY NOTES

HOW WE ARE DIFFERENT AND WHY WE CLOSE 90% OF OUR SHORT SALES!

1. Qualifying the property: This step is the same with us as it is with the traditional method.
2. Establishing a hardship: This is the same for us as it is the traditional method, but we have worked with hundreds of short sale files and have knowledge of what the bank will and will not accept for a hardship. We can read the seller's hardship letter and let them know up front if we feel they will be accepted into the short sale program at their bank.
3. Offer on the Property: This is where we are extremely different from the traditional method. When we submit the short sale package to the lender on behalf of the seller, we also submit in a cash offer to buy the home. Yes, we put in a cash offer to buy the home.
4. Closing on the home: We will close on your property and take every possible step to ensure you will not have any promissory notes to sign at closing, so you can walk away free and clear of any debt to the home.

Nashville Short Sale Definitions:

Qualifying the home:
We need the property address and will look at the comparable homes in the area. We know what the bank looks for when determining the price they will short sell your home for. We will use that data to see if we think the bank will let you sell your home at a short sale. In general, the bank looks at comparable home sales in the area. If a home similar to yours has sold for $200,000 recently and you are trying to get a short sale approved for $150,000, the bank will most likely reject your short sale because they will feel that you either have equity in the home, or you can get a better offer on your home.

We will work closely with the negotiator at your bank to ensure that they do not place a value on your property higher than what the current market deems appropriate to sell your home.

Hardship:
A financial hardship must be established for the bank to approve a short sale for the seller. The bank must have proof that the seller can no longer afford to make the payments on the home either right now or in the near future. Examples of a hardship include:
- Loss or decrease in income
- Divorce
- Adjustable rate mortgage - the rate will be adjusting up, this increasing the payment and making it unaffordable for the seller.
- Medical bills / conditions
- Death of a family member
- Increased monthly expenses
- Loan amount is higher than the property's value
- Relocation

Offer
A bank usually has to have an offer to determine what price they will accept on the short sale property. There are exceptions to this rule with certain banks, but they almost always require an offer to continue moving forward with the short sale process for the seller. It usually takes 30-90 days to close the property after the offer has been submitted to the bank.

Closing
When the buyer purchases the home from the seller. In a short sale situation, it is the same as a normal closing for a seller, but the bank outlines the terms of the short sale. Our ultimate goal is for the bank to release the seller free and clear of any and all liability.

Promissory Note
This the when the bank loses money on the short and obligates the seller to sign a note to pay back all or part of the difference to the bank over an extended period of time. WE HAVE A SUCCESSFUL SYSTEM IN PLACE TO ELIMINATE THESE NOTES. CALL TODAY FOR DETAILS!

Darin is highly specialized in short sale transactions. They are the fastest growing way of selling your home at the current time. These are extremely complex and require one - on - one appointment to determine if the client’s home can be sold at a short sale. Darin will take the complexity out of it for you, and offer his expertise to close your transaction.

Call today for a consultation!

Nationwide, Only 23% of Short Sales Close, The Rest Go Into Foreclosure