Know the most important steps to close a sale of this type.
The situation is repeated again and again … You get a customer who wants to sell a property, but the home’s debt is higher than what is worth in the market. Certainly, the odds of selling it are difficult. It is in situations like these, that you consider a short sale where the property is acquired at a lower price than its debt.
Here we share some tips for you to achieve a successful sale.
Before you present a short sale
- Know your clients’ situation: You are his principal consultant, so study well the values of the property and outstanding debt, including liens and maintenance debts. Remember that a short sale is not necessarily the last resort before an execution, but requires analysis and evaluation of the participants of the transaction in order to be approved. Its nature requires much negotiation and agreement, where all parties must be willing to be flexible. Not all cases are the same, each investor presents his conditions to approve this type of sale and the financial institution is responsible for ensuring that these agreements are fulfilled.
- Do your research on the property: In addition to analyzing the values and the debt, evaluate the registration part of the property. This record is important to establish what has happened to the home.
On the other hand, for the negotiation and approval process to pass smoothly, ideally you have the buyer prequalified. In addition, you must prepare the owner of the residence so that you have at hand information on the reasons for the sale under these circumstances.
- Inform real expectations: The approval time of a short sale may take about 30 days, slightly more than the average of a regular sale.
Remember that the conditions of the sale are established by the investor and the circumstances are evaluated according to each case. That is why it is necessary to have relevant information from the seller, the reasons for the sale and one or more prequalified buyers.
On the other hand, the sale to relatives could be considered as a possible conflict of interest.
To close the short sale ·
- Wait for the bank’s response. Remember that approval of the loan will depend on the credit policies of the financial institution and investors.·
- Prepare your client as the transaction may require some contribution from the seller. For example, because it is an unconventional transaction, the costs of cancellation may vary.·
- Days before closing, study the Closing Disclosure list with your client to clarify any doubts he might have about the transaction to be made.Remember that Conexión Popular experts are ready to help you pre-qualify potential buyers in short sale transactions. For more information, please contact:
Metro – 787.707.1720
North – 787.879.9081
South – 787.812.7730
West – 787.806.1170