What is a short sale?

A short sale occurs when a lien holder is willing to accept less than the full mortgage pay off. They "short" the loan pay off in order to allow the homeowner to sell the property. A property is a candidate for a short sale when all liens, plus costs of sale, exceed the market value. These liens include mortgage liens, mechanics liens, tax liens, unpaid judgments, and unpaid Home Owner Association fees.


Some benefits of a short sale:
1. THERE ARE NO COSTS OR FEES TO YOU.
OUR SERVICE IS FREE
(you pay nothing to your realtor, attorney, title company, etc)

2. SHORT SALE WILL NOT AFFECT YOUR CREDIT
TO THE EXTENT FORECLOSURE WILL
(Short sale will hit your credit but you will be able to rebuild it in 12 - 18 months. Foreclosure will stay on your credit report for 7+ years 
and will considerably lower your credit score)

I have been an Illinois Licensed Realtor for 15 years.
I have been involved in short sales for the last 3 years.
I have numerous short sale certifications and extensive training
Moreover, I have short sale hands on experience and expertise.
I will take care of you personally. 
I will work on your behalf with your best interest in mind.

Why would a lender agree to accept a short sale?

Obviously, a short sale is not a lender's first choice. However, studies have shown that the cost of a foreclosure to the lender can be as high as $60,000. Consequently, it may be more cost-effective for the lender to enter into a short sale to minimize the extent of their losses rather than go through the foreclosure process.

What are the steps in a short sale?

There are many steps to successfully complete a short sale. A short sale transaction takes an incredible amount of time, effort, and expertise to negotiate with the lender and get the job done. Some of the typical steps include:

􀂃 Obtain a signed authorization from the seller that allows an intermediary like a realtor to speak with the lender on the seller's behalf.

􀂃 Obtain mortgage information from the seller.

􀂃 Order a title search on the property to research liens and judgments.

􀂃 Order payoffs to know the exact numbers for the settlement statement.

􀂃 Order an estoppel letter from the Home Owner Association because many times there are back HOA fees due.

􀂃 Establish contact with the lender's loss mitigation department and order a short sale package.

􀂃 With the seller's assistance put together the short sale package and submit it to the lender.

􀂃 Provide access for the BPO or appraisal. Provide comps if needed.

􀂃 Assist the seller/buyer in obtaining repair estimates.

􀂃 Assist the buyer in obtaining a mortgage pre-approval before submitting an offer. The borrower's lender is going to require proof of funds if it's a cash deal or a commitment letter if there is financing involved.

How long will a short sale take?

Short sales can be very time consuming and require patience from everyone involved: seller, buyers, realtors, and lenders. Approval may take two days to two weeks to two months or more.Some short sales may take a s long as four or five months from beginning to end. As of 2008 the average time is 8.1 weeks, according to the National Association of Realtors.

The lien holder(s) has the final say. The lender is the one who approves the short sale 100% of the time. If there is more than one lender, each one will need to be negotiated with separately.

hort sale maybe the best solution to your problems, however you have to consider all the options first.
Call me for a free consultation at 708-539-9900, e-mail at b.pedersen@comcast.net or fill out the form below.
I will get back to you promptly.

CALL NOW, BEFORE IT'S TOO LATE!  708-539-9900
Remember that time works against you!

Barbara Pedersen
Realtor®
Short Sale Specialist
708-539-9900
b.pedersen@comcast.net

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