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Idaho Short Sales >> A sellers tutorial


Idaho Short Sale Tutorial for Sellers


 I recently wrote a post about Idaho Short Sales but feel compelled to write this follow-up post due to the recent phone calls I received from sellers that were very desperate and very miss informed. 

In one particular phone call I received a seller phoned me to tell me she is in a double whammy situation.  She is going trough a divorce and also has a home she feels she grossly overpaid for.  She says this about the home because local Realtors have told her she owes $5-6,000 more than the home is valued at.

This seller, after telling me her story said "What do I have to do to have an Idaho short sale and get out of this alligator I own"?   I first asked her if she was current with her payments and she indicated she was.  I also asked her if she had any sizeable amount of money in savings and she indicated she did.

I informed this seller that she was not an immediate candidate for a short sale in Idaho.  I told her that she would have to be at least 3-4 payments in arrears and have to be in a pretty desperate financial state. I told her some lenders are not requiring a borrower to be in arrears but the vast majority are.  She was surprised at all I told her and said "What good is a short sale in Idaho then"?

I continued informing her that Idaho short sales are for people that are in arrears in their house payments and have no way of making those payments or are headed in that direction.  They also have no way of making the payments that are in arrears and very little money saved, in other words, all options have been exhausted.  If a mortgage lender feels a sellers home is a candidate for a short sale they will send a short sale package to that seller or their representative.  In that short sale package many questions will be asked about the financial condition of that seller. Here is a list of most items required by most lenders and some lenders will require even more documentation:

  1. Hardship Letter
  2. Financial Statements
  3. Tax Returns
  4. Bank Statements
  5. Pay Stubs
  6. Other Documents (any other documents the lender may require)

Assuming one gets to the point of a short sale it does not mean you are home free.  One virtue that is so important when dealing with a short sale is "patience".  If a seller or their Realtor do not have patience you have lost half the battle before the battle has begun.  Also, there are things you or your Realtor need to ask a mortgage lender to protect you the seller both during and after the short sale. For instance, a mortgage company may be able to come after you the seller for any deficiency if your home is sold through a short sale. In other words, the lender may be able to come after you for any losses they sustain.  An experienced Realtor dealing with Idaho Short Sales can save you a lot of heartache. Trust me, this is very, very important.

I have been dealing with short sales and foreclosures in Idaho since the mid 1980's.  I work with a title company closer that is also very experienced in dealing with mortgage lenders and Idaho short sales and I can't tell you how important this is.  If you are facing a short sale or possible foreclosure do not hesitate to contact me and please do so soon.  Time is of the essence and planning is one of the ingredients that are a must when dealing with Idaho Short Sales.

 

 

 Posted By: George Tallabas - Boise Idaho Real Estate Agent - Associate Broker 
with RE/MAX Advantage, Canyon Counties #1 Brokerage in sales and listings
specializing in Boise Idaho Real Estate and Southwest Idaho Real Estate.

 

Native Idahoan and Boise Idaho Real Estate specialist serving Boise, Meridian Eagle, Nampa, Caldwell and the surrounding Treasure valley area of southwest Idaho. Specializing in residential, investment, land and commercial real estate. Search thousands of MLS listings at Boise Homes for sale and learn all about Idaho by visiting Search Idaho Homes

Comment balloon 8 commentsGeorge Tallabas • April 27 2008 07:36PM

Comments

That is very good information about short sales.  I didn't know they took a financial statement.  Too many people paid too much for their house by the time they added in closing costs and put no money down.  The veteran always did this in the past in order to do a no money down.  It takes several years to make that up, in my opinion, and the buyers need to be patient in this process.
Posted by Barbara S. Duncan, GRI, e-PRO, Executive Broker, Searcy AR (RE/MAX Advantage) almost 11 years ago
Barbara - Thank you and yes, lenders require a complete short sales application which includes a budget.  Have a great evening and thank you for stopping by.
Posted by George Tallabas, Idaho Real Estate (RE/MAX Advantage) almost 11 years ago

The person that called you may be representative of what many other people think. That a short sale is some sort of program for a person to sell for less than they paid and not then owing the difference to a lender. Walking away clean if you will. How people get this misinformation is a real wonder but with all the chatter lately in the press about all the government and lender helpful programs, I am sure these wrong conclusions have been drawn upon more than once.

An excellent post!

Posted by William Johnson, San Diego Real Estate Voice, GRI CRS e-Pro CDPE (RE/MAX Associates) almost 11 years ago

You know George, there are agents out there who will list a home as a short sale on the MLS and haven't even spoken to the bank or found a contact person.  Many sellers do not have knowledge of the different steps involved in a short sale and your post offers great information to assist people who are in this situation. 

Posted by Patricia Beck, Colorado Springs Realty (RE/MAX Properties, Inc., GRI, CDPE) almost 11 years ago

William - So very true and well put. Thank you for stopping by.

Patricia - Thank you once again my dear friend.  I hope you have a great evening.

Posted by George Tallabas, Idaho Real Estate (RE/MAX Advantage) almost 11 years ago

George:  Excellent post.  This will help a lot  of people

Posted by Dianne Barody, Pensacola Florida Real Estate (Century 21 AmeriSouth Realty) almost 11 years ago

George - a terrific, clear explanation of what a short sale is and how to deal with it. 

Posted by Stanton Homes, Design/Build Custom Home Builder in North Carolina (Stanton Homes - New Home Builder) almost 11 years ago

Penny - Thank you very much and I hope all is well.

Posted by George Tallabas, Idaho Real Estate (RE/MAX Advantage) almost 11 years ago

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