Anatomy of a Short Sale
Well now I get to create a "Short Sale" transaction. So far we are proficient with negotiating For Sale By Owners, creating financing for two parties to the transaction, creating lot splits for land owners, producing special use permits for business owners and now becoming an expert in Short Sales.
What is a Short Sale? It occurs when the proceeds from a sale will be less that the loan payoff and cost of sales. This is the most creative means to avoid a foreclosure and an extremely delicate matter for all parties to the transaction. Who are those parties? The seller and will the seller cooperate fully in the short sale, the buyer and will the buyer wait for the sale to be approved, the Realtors and will the Realtors do all the endless necessary tasks to close the deal, the title company, the new lender i.e. mortgage broker, all the lien holders i.e. primary mortgage holder and secondary lien holders. I think I covered all the interested parties but more come up when the deal gets rolling.
So as you might have guessed I am participating, actually orchestrating, a short sale as I write this blog. Right now we are in holding position for the first lender to accept the offer and allow the short sale to proceed. All of our paper work is in order and now we need the sign off. Once we get that then we proceed to close. I will keep all you interested parties out there up to date on our progress. Also if you know someone in the pre-foreclosure situation have them contact me. I may be able to help get a short sale started. This will not allow you to keep your house but it will preserve your credit and keep you out of court in most cases.
If you are reading this blog then you are part of the new real estate market. We are changing how we do business and change is here.
chaz rothenberg
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