With changes in the real estate landscape over the last several years, there is a strong chance that you know someone who opted for a short sale of their home. Terms associated with short sales may include upside down, underwater, negative equity or foreclosure avoidance.
But it’s not as scary or complicated as it sounds. Short sales are a viable option for some homeowners. In fact, approximately 1 out of every 4 homes sold through the Arizona Regional MLS is a short sale.
What is a Short Sale?
According to Investopedia, a short sale is “any sale of real estate that generates proceeds that are less than the amount owed on the property. A real estate short sale occurs when the lender and borrower decide that selling the property and absorbing a moderate loss is preferable to having the borrower default on the loan.”
In Arizona, real estate agents and brokers are legally permitted to help borrowers negotiate short sales. Attorneys and HUD Approved Housing Counseling Agencies may also provide short sale negotiation assistance. In almost all cases, a lender will require that a home be listed with a real estate broker in the multiple listing service (MLS) before they approve a short sale.
A short sale is not for everyone. During our initial consultation, the team at ELPIS Real Estate Boutique will advise you about short sales and alternatives, particularly if you wish to keep your home. We also cover the foreclosure process. Lastly, we will encourage you to talk with an attorney and a tax professional, so you can make an informed decision.
If you decide a short sale is right for you, then we will ask you to fill out forms for us and to start gathering a variety of documents required by most loan servicers. Rest assured that technology platforms like Short Sale Commander allow us to process short sales and interact with lenders like Wells Fargo, Chase, GMAC and Bank of America in a secure and nearly paperless manner.
Education is important. Some of the designations our real estate advisors hold are as follows:
- Certified Distressed Property Expert (CDPE)
- Certified Short Sale Negotiator (CSSN)
- Masters Certified Negotiation Expert (MCNE)
- Short Sale & Foreclosure Resource (SFR)
Negotiating a short sale is not easy. Experience, responsiveness and skill are crucial. While we can never guarantee results, we can say that ELPIS has a strong track record. We handle all short sale negotiation and processing “in house,” so your best interests are personally managed by our dedicated team.