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Total Properties Listed: 10,245
Month / Month Chng: -3.48%
Avg Days on Market: 117
New Listings Today: 63
Median List Price: $195,000
Month / Month Chng: 2.69%

Short Sale Information

A SHORT SALE is not so short even though as of June 15, 2012 Fannie Mae and Freddie Mac implemented new guidelines to assist the process.  These changes require mortgage services to make the short sale acceptance decision within 30 days of receiving a short sale offer.  Pre-approval short sales will also have the same timeframe.  There may be times when the lender needs more time to make the decision.  Remember that you may have one short sale for an answer but the lender will probably have several deals on their computer and/or desk.  If in the event that the short sale answer needs extended, the lender must give the borrower or borrower’s representative weekly status updates but the decision must be made within 60 days of the initial short sale application.  The lender may have needed the extension of time to do a price opinion on the home or to get the approval of the mortgage insurer.

SHORT SALES are more complex than the routine home sales.  There may be a couple lenders involved in a first, second and possible third mortgage plus the distance from each other so negotiations are done online, by phone, via fax, in person and possible all of the previous. 

Someone may question the reason behind the SHORT SALE but other see this as a better alternative than foreclosure.  In a SHORT SALE, fees are smaller, the property transfers ownership at a faster pace and you also eliminate all the problems that come with a home left vacant after foreclosure.  

If a homeowner is considering a SHORT SALE, you may want to consult with a REALTOR to assist with marketing the home and bank negotiations.  The components of an effective SHORT SALE package include from the seller, (1) a hardship letter informing the lender of the problems that arose to cause the loss of income.  This can be several reasons but the ones I have seen most as a Broker for Star Harbor Realty are divorce, medical bills, and/or loss of income or job.  (2) A completed financial form of your credit/debt ratio. (3) Completed Form 4506-T (Request for tax transcriptions).  (4) Copies of your last 2 months bank statements for all accounts.  (5) Copies of most recent pay check stubs for one month of all mortgagors or verification of Un-Employment, Disability, Pension, Social Security income.  (6) Copies of signed complete Federal Income Tax returns for the last two years, including all schedules. (7) Authorization signed for all third parties listed on the Note, for your account to be discussed with your REALTOR, attorney, relative, spouse, etc.  (8) A copy of the Real Estate Listing and the BLC (MLS) print out.  (9) Copy of a ratified sales contract upon receipt-subject to investor and/or Mortgage Insurance approval.  (10) A net proceeds sheet which has been prepared by your agent, a title company, or attorney.

Please be aware that the collection and foreclosure process will continue uninterrupted unless your lender decides to stop the process while you are working on the short sale.  Otherwise, your timely response is essential and you will need to be aware of the additional requests the lender may need to make the final decision.  Again, Collection and Foreclosure procedures will continue until a written agreement is signed.

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