Simple steps to listing your home.
Once you have decided through competent counsel, that a short sale is the right choice, we will proceed to get your home on the market. You will receive a lot of letters from people looking to help you through this difficult time. Please be careful of companies that look for you to sign over your deed to them or charge money upfront. We do not charge you any fees to sell your short sale listing. The bank pays the realtor’s selling and buyers brokerage fee. Also on the flip side you will not receive any funds from the sale of your home. You also can’t repurchase the home at the new price.
It averages two to three months once a contract has been submitted to complete the short sale. This restricts the amount of potential buyers because of the length of time required to close one. There is also no guarantee that the lender(s) will accept the short sale. It takes a special buyer to wait out the short sale and an aggressive Las Vegas agent to stay on top of the banks to make sure they have complete short sale package and are progressing towards a positive outcome.
1. We find the comparable Las Vegas homes that have sold in your neighborhood from the MLS and also from tax rolls. We then find a competitive price for your home. We want to price aggressively yet realistically. If someone puts a offer in at a price that can’t be justified, then we waste everyone’s time.
2. Our next step is to set up a meeting at our office to review the comparable’s and sign the listing agreement. We will also have you bring the signed financial statement, authorization to speak with your lender(s) and your hardship letter. We will also need to submit to your lender your last 2 years of tax returns.(due to the confidential nature, please make copies of tax returns and mark out all but the last four of your social security number) We have included an outline of the process.
3. Your home now goes active on the MLS and 15 other website portals for advertising. Now we work to get a bona fide offer on your home.
Once we receive an offer
1. Once we receive the offer it is then presented to you for signatures. Now we have a contract Contingent on bank approval of the short sale. The property is then changed to “C” status for contingent in the MLS. At this point we can still receive additional offers and decide whether to forward them to the bank.
2. We now submit the ratified contract to the bank along with an estimated HUD (net sheet) to show the bank how much money they will receive after all closing costs associated with the short sale. We also run fresh comps to show the bank what has sold and be able to justify the sales price. From the time everything is submitted,it will take a week or so to get the offer in for the initial review of your file to see if they will move forward with the this offer.
3. The next step will involve the lender ordering a BPO (broker price opinion) or an appraisal to determine the current market value. This is how they decide what price they are looking to get out of the property. If the BPO and offer price are close, then they assign a loss mitigation agent to your file.
4. From this point the negotiator goes through your file, reviewing your hardship and why you can no longer affords the payments, they review your monthly finances and they review the offer. This process is typically up to 30 days.
5. Once the negotiator has reviewed they submit the file to their investor for approval. The investor will look through the findings of the loss mitigation agent and recommend, decline or counter the buyer with the amount they need to satisfy the lender on the short sale.
6. Once the lender approves the sale, they send over written approval of a short payoff. This takes a week or so from verbal acceptance to written approval. Now if you have a first and a second, you need written approval from both unless the sale price covers the first mortgage completely, you would only need approval from the second. Another aspect is if the home mortgage has PMI mortgage. They will also need to approve the short sale in Las Vegas. Homes with first and seconds with different banks are the most work and you have instances where only one of them approves. If there is a sale date from the first during this process they can place the sale date on hold while they work through the file. Depending on the bank they may postpone several times. No two deals are ever the same but the fundamentals are. This process takes time, patience and a lot of care.
So we have written approval, now what?
1. From this point the terms of the contract are now started. Meaning the buyer has his 10 days due diligence to get their financing in order and inspections ordered. After this 10 days is when the seller can no longer walk away from the deal without risk to their earnest money deposit. From written approval to closing typically will be 30 days.
2. The seller then goes to title to sign their docs on or around the closing date. Once the property funds and records with the Clark County Assessors office it is then the buyers home. You will need to be out of the property at this time unless different arrangements are made.
No short sale ever goes exactly as planned and as you have read there are a lot of variables involved in getting one closed. Please fill out the contact info on the contact page and we will contact you asap.
Jeff and Lee Ann Mix
Orange Realty Group LLC
8460 S. Eastern Ave. Ste. C
Las Vegas, NV 89123