Foreclosures: We BUY homes in Foreclosure. We BUY Short Sales!

Foreclosure: We BUY homes that are in Foreclosure. We BUY Short Sales!! November 13, 2009

It takes time and paperwork and persistence.

The first step is to contact your lender and inform them you can no longer make payments on the mortgage, and that you need to sell your home in a Short Sale to avoid foreclosure on your personal credit history. The lender’s customer service staff at first may or may not accept your request since the first person you will speak with is trained to say “when can you send in your next mortgage payment” and will only focus on collecting money from you. That is standard for any lender, bank or servicing company.

You need to understand that the Lender will attempt to “collect” from you first before they take your file to their Loss Mitigation or Short Sale Department.  One of our staff members can assist you with the initial calls to the lender’s mitigation department to get their attention, and postpone the auction date and start the short sale process.

Your lender will require that you provide the following documents:

1. Hardship Letter – handwritten is best, dated + signed.
2. Proof of current income – pay stubs
3. Copies of 3 month bank statements, all pages
4. Copies of Last 2 years W-2 and Federal Tax Returns
5. Financial Statement with current Income + Expenses
6. Copies of utilities, credit car, car loans + bills
7. Statement requesting that you want a Short Sale
8. Lenders financial statements + forms completed, signed + dated
9. Listing Agreement + Purchase Offer for the home
10. Photos of the home – interior + exterior.

Once this information is submitted to your lender and they’ve confirmed the receipt of the documents ( in most cases, we fax the items 2 to 4 times since they “miss” the documents, or they say they “never received them in the first place.” ) then the process itself starts.

The short sale can take anywhere from 3 to 9 months, with an average time frame of 3-4 months. It truly depends on your lender or bank — the largest of the banks ( Bank of America, Chase, Wells Fargo Bank, etc.) have an incrediable amount of files and their loss mitigation departments are way, way, way, way behind on getting short sales accepted, processed and approved.  So, the short sale, as I stated, requires patience and persistence

Your bank or lender will send out a licensed agent or a licensed appraisal to inspect your home for a B.P.O. ( Broker’s Price Opinion or Appraisal report) and they will determine a value for the home. From that point forward, the lender should be able to give a final verbal or written approval letter for the sale of your property, yet with certain “conditions” as stated in their written approval.

If all items are acceptable to the lender, then the sale of the home should occur without further delay and close in a 30 day or less period. That is the ideal time frame for the final closing of the short sale.

One KEY issue: the lender will state in their written approval letter that the owner cannot continue to rent or attempt to re-purchase the property after the sale of the home.  Do not even consider doing this since the lenders consider these actions to be fraudulent since they are taking a massive loss on the sale of the home.

In brief, contact your lender, collect your documents, work with an experienced agent or broker, find or work with a willing, interested and qualified buyer and work with your lender to get a written approval for your short sale. 

The most important element, of course, is to find an interested, qualified buyer who will wait to 3- 9 months for the approval and purchase your home.Your agent will need to work swiftly to find a qualified buyer prior to the foreclosure date.

If you need a CASH Buyer for your property – Contact Us Here.