Short Sale Route for Sellers 3 Grand Rapids Short Sales

Exploring the Short Sale from Start to Finish. What sellers and buyers need to know:

Completion of the Short Sale Package:

The agent and the seller work close to assemble the proper paper work (short sale package) these documents must be filled out truthfully and complete. If the banks receive anything that’s not complete they could ignore or move the file to the bottom of the Short Sale pile.  I cannot stress enough the importance of concise and complete information when filling out the Short Sale package.

Occupying the home:

While your house is listed as a Short Sale your bank will send someone out to check the occupancy of the home. If they find the house is vacant they can Accelerate a foreclosure on the property. I suggest to remain in the home until the sale is complete.

Utilities and HOA Dues:

When selling a home via the Short Sale process it’s important keep utilities in place. It’s always better to show a home that has heat, electricity and water. The home owners responsibility is to pay all bills associated with the property. As an example, if the water bill or home owner association dues are not paid the home WILL NOT CLOSE. Banks will not pay these bills.

Deficiency Judgments, 1099s, and Short Sales:

If the lender moves forward and forecloses or allows a short sale you only have a few options, they will write off the dept or issue a 1099-C (cancellation of Dept) OR they will choose to pursue a Deficiency Judgement. It’s important the seller/s always consult their own attorney and/or accountant to review the possible ramifications of a short sale. Check out the Mortgage Forgiveness Dept Relief Act aka, HR 3648

Behind the scenes:

• Your agent should set the best price to get the home sold. It’s important not to come in to high or low and attempt to hit the sweet spot with the listing price. 
• Contact your bank and obtain an overview of their processes, correct contact numbers ect. Complete all the paperwork, take photos and implement the marketing plan.
• Receive and process all inquiries on the house. Set up showings, communicate with bank and seller all activity with listing. Review the pricing each month and implement a reduction if the home is getting no activity.