Short Sale Information and Ideas

1. Choosing a Realtor

When a homeowner makes the tough decision to do a short sale, there is another tough decision to make. Representation. Who are they going to use to represent them in the sale of their home, negotiate on their behalf, and do whatever it takes to close the sale (within legal parameters, of course). Most people would prefer to turn to a friend, but is that the right call? Sure, you trust them, you are more comfortable sharing personal information, and its easier. However, it takes a lot more to move a short sale than a regular home sale. Choosing the agent is crucial. The agent needs to be aggressive in both marketing and negotiating. The Realtor will not only have to negotiate offers that come in on the property, but the Realtor will also have to show, prove and negotiate with the bank to lose money. That is key. The Realtor will be on hold ALOT. The Realtor will need patience, and have the ability to be firm. This is not a case where you can leave a voicemail and expect a call back. The Realtor will have to be relentless at all hours of the day, especially if the bank is in California. This means negotiation during dinner, before bed, when the agent first wakes up. I have been on the phone negotiating offers at 1AM Eastern Standard Time. You have to seize every opportunity to reach an agreement, pushing them to voicemail is NOT an option. Think about these things when you think about calling someone to list a short sale. You need a bull dog, someone who will fight for you. If your friend can do that, great, if not, CALL SOMEONE ELSE!

2. Short Sales and Foreclosures Becoming Prevalent in Charlottesville

Myself and my group (the Avery Group) have been working short sales for a while now. We have successfully closed 5 short sales this year, have two more under contract, and have three more being listed. Most of them have been in Albemarle County. Despite what people think, or because they can only find 8 or 9 of them in the MLS, foreclosures and short sales are becoming more and more prevalent in our area. Even the Daily Progress has had a couple of articles about them in the newspaper. A short sale is a method of preventing foreclosure. With the exception of loan modification, it is usually the best option. 95% of the time you see a short sale, there is a foreclosure looming. Don't be fooled by terminology. Also, look for key terms in the MLS. For example, "subject to bank approval" is usually a good one to look for if you are looking for a possible foreclosure or short sale.

3. Short Sale Success with the Avery Group in Charlottesville, VA

Not too long ago, we took a listing for a woman, for confidentiality we will call her "A". She had a home in the city of Charlottesville and was falling behind on her payments. We took her listing and proceeded with a short sale. Come to find out, her loan was for $90,000 more than the market value of the home. There is no way this house every got an appraisal for that much over what the home was worth, especially since it didn't have a HEAT SOURCE!!! By the way, homes without a heat source should never approve for a mortgage, especially a mortgage with a value greater than the market value. Anyway, we were able to sell her house, prevent foreclosure, save her credit AND get a great deal to an investor.

What's the point you ask? Well, there are a couple. One - there are options out there for people looking to prevent foreclosure. Two - in my opinion, any time you help people you are doing a service for the community. In this case, we helped one lady save her ability to follow the American Dream and borrow money when needed. We also got an investor, whose plans for the house will be great for the neighborhood as a whole, the right price to move in.