Short Sales In St Louis

Short Sales Fast st louisEverybody’s heard of them but what exactly is a short sale? A short sale is when your mortgage lender accepts a discount on the mortgage to prevent a foreclosure from happening.  Short Sales are designed to help distressed homeowners who are in a financial hardship who owe more than the house is currently worth. Now that you have a basic understanding of what a short sale is let’s look at the basic components of what makes up a short sale.

Not Every Property Qualifies

Despite contrary belief not every property qualifies for a short sale through the eyes of the bank. Lenders are under no obligation to accept a short sale, they must agree to consider one if they feel like it is in their best interest to do one.

It’s in the lenders best interest to approve the short sale if the bank will make more money through the short sale than to foreclose on the property. It is estimated that banks might save 24% to 28% on foreclosure costs to accept a short sale over a foreclosure, but some investor guidelines make it more profitable for the bank to foreclose.

What Qualifies a House For a Short Sale?

A majority of the short sales are handled by real estate agents who are experts in short sale negotiation. There are 5 key factors when banks are considering accepting a short sale on a home.

  1. Under Water Home
  2. Financial Hardship
  3. Repairs Needed
  4. Some Low Comps In The Area
  5. Behind On Payments (you can still get short sales accepted if you’re not behind on payments)

The Role of The Real Estate Agent

There are some short sale agents out there who list a short sale that never get sold. This is because the agent failed to qualify the short sale sellers. An agent has to know what price a short sale will sell at and often times they list them way above what a buyer would pay. This is why it is important to hire an agent who has process at least 50-60 short sales in their career. Below is what the agent is responsible for in the short sale process.

  1. Gathers the required paperwork
    1. Hardship Letter
    2. 2 Years Tax Returns
    3. 3 Months Bank Statements
    4. Financial Statement
    5. Last 2 Paycheck Stubs
  1. Puts Listing Agreement Together
  1. Lists Property On The Market
  1. Puts Together Short Sale Package For Submission
  1. Order’s BPO (Brokers Pricing Opinion)
  1. Negotiates Price With The Bank

If you find yourself facing a foreclosure in the St Louis or St Charles counties our company St Louis Homebuyers, LLC are experts in short sale negotiations. Our short sale negotiators have successfully  negotiated hundreds of short sales throughout the years. It doesn’t matter what your situation is, if you are behind on payments or not behind at all, if you are experiencing difficult financial times and  you feel like your current house payment is too much for you to handle then give us a call right away. Even if we don’t pursue a short sale we will work hard to find a solution that works best for you. All calls are free and 100% confidential. Give us a call today at 314-783-6842

Leave a Comment

You must be logged in to post a comment.