Short Sales & Foreclosures

Wendy Wilmot Properties is your local resource for the successful sale or purchase of distressed properties.

With so many unique bank processes and rules, plus federal regulations, navigating a short sale or foreclosure process can be a daunting and frustrating task for both buyers and sellers. At WWP, we have certified Short Sale & Foreclosure Resource (SFR) professionals here to help you through the entire process and beyond. We are continually gaining new, up-to-date understandings of different bank processes, and we will work on your behalf to make sure you have all you need to complete a successful transaction.

ABOUT SHORT SALES

Short Sale Defined

When an owner and his/her lender(s) agree to sell a property for less than the note owed against that property. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose. Neither all sellers nor all properties qualify for short sales, and every transaction is unique.

A lender’s consideration of a short sale may not be a result of seller’s default. A lender may consider a short sale if the seller is current but the value has fallen, or if the seller has over-encumbered the property. In some cases, a lender’s willingness to grant a discounted price might bring the price in line with market value, not below it. In such a case, there will still be tax and credit implications for the seller, and the buyer may not be getting the bargain he or she thinks of when hearing the words “short sale.”

To understand the difference between a foreclosure and a short sale, see About Foreclosures

ABOUT FORECLOSURES

Foreclosures: What’s the difference?

Buying a foreclosure differs from a short sale in that the buyer is no longer negotiating with an owner and a lender; rather the lender has become the owner. As a result, we will negotiate directly with that lender. While the process itself can be a challenge, it is essentially a quicker and more direct process.

Each lender has different rules, processes and forms. However, there are a few things you should have ready immediately for any foreclosure process, see Buyer Info.

BUYER INFO

What do buyers of short sales need to know?

• A short sale can typically take 60-180 days. Patience is the key to making a short sale work!

• Buyers should be ready to show proof of funds immediately, and have a buyer’s info sheet to be ready to submit with the offer.

• Do your homework: Sit with your agent and go over all of the comparables for your target property and find out as much as you can about the seller’s position in the short sale. A stubborn, unwilling or disorganized seller can mean the difference between a quick transaction and a lengthy process.

Short sale buyer forms and samples to get the process started

Wendy Wilmot Properties does not recommend trying to navigate the short sale process on your own. In addition to skilled and experienced agents, we recommend that you speak to a dedicated short sale attorney.

The following documents have been contributed as samples from various local Short Sale Attorneys:

Sample Loss Mitigation Fee Buyers Agreement

Sample Short Sale Packages

Sample Buyers Information Sheet

Local Short Sale Attorneys

What do buyers of foreclosed properties need to know?

Each lender has different rules, processes and forms. However, there are a few things you should have ready immediately for any foreclosure process.

• If you will be securing a loan, make sure to have already contacted your bank and have received an approval letter with proof of funds. A pre-qualification letter is not generally preferred. Make sure to  get a letter with an approval amount.

• Before making the offer, sit with your agent to go over all of the comparables for the property. Find out of there are any other liens or encumbrances on the property, such as back due HOA fees.

• Also find out the Club status of the property, if any, and whether there are city or county taxes owed.

Call Wendy Wilmot Properties to discuss whether or not a short sale or foreclosure opportunity is right for you. Call 910.470.0000

SELLER INFO

What do short sale sellers need to know?

• Sellers should make sure to have a completed short sale package ready, including: sellers info sheet, two years of tax returns/financial statements/bank statements, and a hardship letter, among other documents. Seller should also be prepared to update this information every six months, even if they are currently in the middle of a deal.

• Seller needs to be prepared for a lengthy short sale process with the lender(s), especially if there is more than one lender involved. Be ready to get documents back to the agent as quickly as required.

• We understand that committing to a short sale is not your ideal solution, but in many cases, it is the better solution.WWP will work diligently and discreetly to make the process as quick and painless to you as possible.

Seller forms and samples to get the short sale process started:

Wendy Wilmot Properties does not recommend trying to navigate the short sale process on your own. In addition to skilled and experienced agents, we recommend that you speak to a dedicated short sale attorney.

The following documents have been contributed as samples from various local Short Sale Attorneys.

Sample Loss Mitigation Fee Sellers Agreement

Example of a Hardship Letter

Sample Seller Requirements Document

Sample Short Sale Package Guide

Sample Short Sale Packages

Sample Sellers Information Sheet

Local Short Sale Attorneys

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