Short Sale Specialists in Philadelphia - Plan and Prepare for Success !

Short Sale Specialists in Phildelphia

It is amazing how many realtors and sellers are listing properties just based on what is owed on the property at prices that are unrealistic and will never sell. A recent short sale we did was in Northern Liberties where 3 other realtors had the listing before us and just listed it hoping to get a sale to clear title ! When we met with the seller, we realized it was a perfect candidate for a short sale and got the property sold within 30 days !!!

If you are not familiar with short sales, refer to our previous post "What is a short sale ? "

When you do a short sale it is imperative to plan ahead and prepare in the very beginnning to have all your documents and paperwork in order. As a seller, it is critical to gather the information as quickly as possilbe to give to your realtor.

When we take a short sale listing, here is a basic checklist of items that we will do in the very beginning:

1. Discuss the situation with the seller in terms of their hardship. We need to know this when we communicate with their lender. We will also have the seller write a hardship letter in the first week of us taking the listing.

2. Have a title company do a mortgage and judgement search in the very beginning. We need to know as soon as possible what other types of liens we are dealing with besides the mortgage.

3. Authorization Letter - No bank will speak to any realtor without authorization. We will have the seller sign these letters when we take the listing.

4. Order the payoff - Often times, what is owed is more than the seller thinks due to interest and penalties.

5. Gather the info (bank statements, tax returns, W-2s, etc). Most banks will have on their website or in their short sale info, the documents that are needed for the short sale package.

6. Marketing - make sure in the MLS that is clearly communicated to the buyers agents and buyers that their agreement is subject to short sale approval. That way there is no confusion later on... it is important to try to get the best buyer for the deal... one who is flexible on settlement as sometimes once you get the approval, it needs to settle fast. Other times (as often is the case) there will be a delay so it is important that if need be, the buyer can wait an extra 30 to 60 days before closing.

There are other items to plan and prepare for. At least with this preliminary list, one can increase the chances of success right from the very beginning !

If you are a seller in Philadelphia who thinks that this may be the best option for you, contact Chris and Stephanie Somers at 215-400-2612 or thesomersteam@yahoo.com

Philadelphia Real Estate - Chris and Stephanie Somers

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Short Sale Specialist in Philadelphia

A short sale is when your bank agrees to accept a lower payoff than what they are owed in order to approve a sale of the property.

Short sales are becoming increasingly common as the housing crisis has accelerated and many home values have depreciated since an owner purchased. In all these cases, the value of what a house can be sold for is less than what it is worth.
In our Philadelphia real estate market, we have noticed that the average realtor will list a property for way over what it is worth in hoping that it sells. Of course, it rarely does and even if an agreement does come in, chances are it will not appraise. The better solution is to look at the circumstances to determine if the house should be marketed as a short sale candidate.

Without going into too much detailed discussion, the process is extremely complicated and time-consuming. But it can be very beneficial to a seller who is in desperation and does not want their credit ruined as a result of a foreclosure and very beneficial to a buyer who has an opportunity to procure a property below market value. As real estate agents, we have successfully completed many short sales for our clients who were so appreciative of the outcome. In several cases, their properties were even listed with prior realtors (in one case 3 prior realtors) who never even explored the option of doing a short sale.

Typically for a short sale to be approved a seller has to have a level of hardship and is behind on their mortgage. Although we did have one short sale approved for a seller who never missed a payment on her Northern Liberties condo, but had a case of extreme hardship due to her husband passing away.

Are you in a predicament where a short sale may be your best option ? If so, contact Chris and Stephanie Somers at 215-400-2612 or thesomersteam@yahoo.com to discuss further.