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SHOULD I CONSIDER A SHORT SALE AND WHAT IS THE PROCESS?
We are seeing less and less short sales throughout the country and do believe we will
continue to see a decline in this type of sale in the near future. According to the National Association of Realtors most parts of the country are starting to see a rise in real estate value again, so these will be less necessary. That of course does not help the person that still needs relief from a mortgage they are struggling with. In this episode Shane discusses what a short sale is and the basic process of a short sale.
(01:18) Shane received an invitation to attend the National Academy of Best Selling Authors Quilly awards in Hollywood this fall. This is for the book he is co-authoring with Brian Tracy, Nick Nanton, and other entrepreneurs around the globe called Transform. Click the title to find out more about the book or to download a free copy of a chapter Shane wrote. Make sure you follow us on Social Media (Facebook or Twitter) for more up to date info about the awards.(04:12) Shane answers the question “Why is it called a short sale when it takes so long to complete the process?”
(05:10) What is the biggest reason why someone would want to complete a short sale. ***Spoiler alert TO AVOID A DEFICIENCY JUDGMENT*** There are other possible positive outcomes as well and Shane discusses those as well
(10:07) Shane discusses what the process is and encourages anyone considering it to contact a Certified Distressed Property Expert CDPE to ensure a smoother transaction. If you would like Shane and his team to help you locate a CDPE agent in your area leave a comment below or reach out to him on the social media pages above. He would be honored to help point you in the right direction.
(13:30) Shane mentions some forms possibly needed to complete a short sale. Here is a list of some of the most common forms that can help you start to get an understanding.
1.) CDPE Borrower Authorization form
2.) Bank of America Borrower Authorization form
5.) Florida Association of Realtors Short Sale Addendum to purchase contract
6.) Most Common Documents needed Checklist
(16:50) The above forms are a good start for the documentation process. Since we are working with banks and lenders it really is the same (just more intense) documentation process for getting a short sale completed as it is for getting a loan today. Shane recommends you listen to EPISODE 4 which discusses Loan Documentation and how it is so important in today’s lending environment.
(19:07) Shane touches on the subject of Strategic Default and states he does not recommend this strategy. Multiple definitions of strategic default float around the internet but it comes down to the same concept: A strategic default is the decision by a borrower to stop making payments (i.e., to default) on a debt, despite having the financial ability to make the payments.
(25:20) Shane discusses the option of the seller possibly having to bring a note or IOU to the closing table. This does not happen all or even most of the time, but does happen often enough to be brought up in the episode.
(27:10) Is it possible to complete a short sale on a property that has more than 1 lien or mortgage on it? This is where that question is answered.
(31:39) Should I spend retirement money on keeping up a mortgage prior to considering a short sale? PLEASE listen here before even considering that option.