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How it Works
When We Do the Short Sale
1. We will analyze your situation and let you know if it meets our criteria.
2. You are INVISIBLE to most lenders unless an offer has been made for them to consider. The WED Property Solutions Investors will make an offer to buy your property, once that offer and Short Sale package it at the lenders office, the process of getting you out of that house will begin.
We are Buyers!
Things we are looking for in your home:
· Over $100k owed on mortgage(s)
· Decent selling condition (Ugly is OK, but no major problems)
· Generally not over 50 years old
· No condos, town homes, lots, unfinished
new homes, or mobile homes
· No sink holes
· Good chance for resale (at the right price)
· You have experienced a long term hardship and cannot pay off the
note or continue to make payments
· All owners are cooperative and willing to vacate prior to closing
· You are not a candidate for a loan modification or forbearance
· Foreclosure sale is more than 10 days away
· The property is over-leveraged (no equity)
· The property is not included in any current bankruptcy proceedings.
If so, call us when it is dismissed or discharged.
3. We gather some up front paperwork that will be necessary for the Short Sale. The first one will be an authorization form signed by you for us to speak with your lender(s) regarding the home loan(s) and what they require for the short sale. We will contact your lender to verify some information and confirm their requirements for a short sale. Also, we will want you to complete a Short Sale Questionnaire.
4. We will meet with you to execute some documents between ourselves that will allow us to negotiate the Short Sale, and give us permission to list the house so we can resell it after the Short Sale. Once we get this up front paperwork completed, you really don't have to do much, other than allow your house to be shown if you are still living there.
5. We will submit the Short Sale offer to the lender(s). Our initial offer is usually on the low side, and is merely to start the Short Sale process. It is better to start low - we can always come up. Once the BPO (Broker Price Opinion, ordered by the lender) is completed, we will negotiate with the lender(s) and raise our offer price through lender negotiations.
6. While the Short Sale is being processed, the house will be listed on the MLS. The house will be listed at or just below market value, and will be reduced every two weeks until we start getting offers. This establishes a history that can be used by the BPO agent. We will work to align this offer price with the BPO and our offer for the Short Sale. Our goal is to create a spread between the two prices, and that is how we make our profit. However, sometimes there is no spread to be made. In these situations our first priority is to complete the Short Sale, and in the event there is no profit for us we will step aside in order to facilitate the completion of the Short Sale. We will look to make profit on our next deal.
7. Normally, by the time offers are being made by end-Buyers, the Short Sale process will be well under way. Short Sales can take anywhere from 2 to 6 months from start to finish, depending upon the lender and the situation. Time to closing for an end-Buyer is reduced to 30 - 60 days vs. 3 - 6 months (or longer) that a normal Short Sale can take. Many times an end-Buyer will walk away from a short sale because it takes so long. Our method helps prevent that.
Pay attention here....the worst case scenario is that the offer made by an end-Buyer (after we drop the price to what the market will bear) is not enough to satisfy the lender for a short sale. In that event, nothing we could have done would have prevented the house from going to foreclosure. There has been no cost to you, and you are in no worse a position than you were before we started the short sale.
The best case scenario is that the foreclosure is prevented, the house gets sold, you get on with your life without a deficiency hanging over your head, the lender doesn't have to take the house back (and saves money), your Realtor makes a full commission, and we make a profit for putting it all together. That's a win-win-win-win.
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