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:
- Hardship Letter
- Financial Statements
- Tax Returns
- Bank Statements
- Pay Stubs
- 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.
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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
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!
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.
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.
George: Excellent post. This will help a lot of people
George - a terrific, clear explanation of what a short sale is and how to deal with it.
Penny - Thank you very much and I hope all is well.