Pam's Prescott Blog

If you check one of my archived blogs from August, you will see that I wrote about Short Sales.  Looking at that now, I see that I did a pretty good job, but things are changing all the time and I want to update you on some things I have learned about Short Sales.

Banks are finally beginning to come around to the idea that Short Sales make sense and are beginning to learn how to work with Realtors.  But that's because Realtors are finally getting their attention.  Banks lose about 26% more on a foreclosure than they do a short sale, but they are just starting to understand this.  You will still need some strong and experienced people on your side to navigate the bank's obstacles and get the short sale to work for you.

1.  If you owe more than what your home is worth and have to sell, you should consider a short sale over a foreclosure.  Foreclosures, and moreover, the payment history record generated from months of missed payments, can severely damage your credit, while a short sale usually is not so punitive.

2. If you decide to short sell your home, you do it to save your credit.  You will not make any money, but with good representation, you likely won't have to pay any either.  In fact, how much the home sells for is irrelevant to you, in that it is really the BANK's decision. 

3. You will need quite a bit of paperwork to complete the loan package, including a hardship letter, pay stubs, tax returns, and bank statements.  I will tell you exactly what you need and how to get started on your package.

4. We used to be told that you needed to be two months behind on payments to start the short sale process.  We now know that is not true.  With an experienced Realtor working for you, you can start as soon as you know you are in financial trouble and have to sell.

5. Short sales take A LOT of patience, persistence, and experience.  You cannot do this, nor should you do this on your own.  Make sure your Realtor knows what he/she is doing when it comes to short sales.  If the Realtor is clueless, you are in for a lot of heartache.  If the Realtor is educated and experienced, you will be much happier with the results.

If you think you may need to short sell your home, please call us.  We can go over the options with you and explain the process.  Above all, don't give up and don't foreclose!  There is help available!!  928-899-2472