Buying a Short Sale Listing

Shakopee Short Sales

If you are thinking about purchasing a short sale in Shakopee consider a few things prior to jumping into buying one of these homes.

Short sale listings in Shakopee can take anywhere from a few weeks to many months to just hear back from the bank. What take so long to hear back from the banks on a Shakopee short sale offer? First off many real estate agent know about the process and are well prepared, but other Realtors are not and this can delay the process by weeks if not months.

 

The Short Sale Process

Most Shakopee real estate agents prepare their client for a short sale package prior to receiving an offer. This short sale package consists of preparing a cover letter, often called a hardship letter that is sent to the banks. Often times the bank or banks require the sellers to also include most recent paystubs, W2’s, prepare a budget showing their expenses exceed their income, and all banks statements.  If the seller is well prepared for a short sale these documents will be very helpful in getting the process going.

Once an offer is received the short sale realtor representing the seller prepares the package to send to the bank or in some case an attorney also representing the seller. We recommend all our seller work with a short sale real estate attorney who specializes in the process. We do offer referrals to the local attorneys we recommend.

After the Short sale package is sent to the attorney, the package then gets assigned to a legal assistant who delivers the package to the bank. The banks typically takes a week or so to review the file due to the high volume of those submitted. After reviewal there are usually a few other forms that need to be signed by all parties.  The file then is assigned to a negotiator for the bank. After the negotiator is assigned, the bank order what is called a “BPO” Brokers Price Opinion. The bank orders a BPO to ensure the value of the property is fair and that the short sale realtor and seller are not selling the home under value.  Once the BPO has been completed the file then goes to get reviewed again for the short sale process and a settlement is presented to the seller. Sometimes the seller and bank can go back and forth between negotiations before an agreement is reached. If no agreement is reached, often the file is then dead and a purchase agreement is cancelled. Some settlements that are common for banks is to ask sellers to bring in a cash settlement at closing, to sign a promissory note for a specific amount, a combination of the previous two or nothing a all.

Distressed Property Realtor in Shakopee

Realtors can specialize in short sale listings and many real estate agents that hold the Certified Distressed Property Expert designation have knowledge of the Shakopee short sale process superior to that of most Realtors in Shakopee. Tom Scott of Re/Max Advantage Plus and the Twin City Real Estate Team is not only a Certified Distressed Property Expert Realtor in Shakopee, but he also holds a Short Sale Foreclosure Specialist Designation. If you are considering doing a short sale on your home or townhome in Shakopee call Tom Scott at 612-384-2178 or email him at TomScott@Remax.net.