The short sale process, at times, can seem very overwhelming.  The following explains what to expect during a short sale on your house in the metro Atlanta area.  Different states and counties have different laws, so this information may or may not pertain to you depending upon where you live.

• Time if of the essence.  In Georgia, the time from a Notice of Default or Notice of Sale Under Power letter to a foreclosure auction can be 60 days.  
• The lender will want to see your complete financial picture.  This means you will need to provide copies of tax returns, pay stubs, bank statements, etc.  The lender will want to know what all your assets are.  We provide you with an Excel spreadsheet to help you collect this information.
• The lender will also want a concise letter clearly describing your financial hardship and how it happened - unemployment, business failure, divorce, medical bills, death, etc.
• The bank may ask you to sign a promissory note or an unsecured line of credit for the difference between the amount you owe them and the amount they will net on the sale.  We negotiate on your behalf to secure a full and final satisfaction of all claims, wherever possible.
• When the lender finally approves the  short sale, they may request that the transaction close in a month or less.
• Sellers never receive any proceeds from the sale.  Period.
• Your real estate agent, closing attorney, title company, etc. may have to accept reduced fees to satisfy the lender.
• Lenders are incredibly overwhelmed with short sales and it often takes them 60 days to approve a short sale.  While a few lenders have streamlined their processes, do not expect a quick resolution.
• Congratulations !  You and your agent received a viable offer on the property and the agent has submitted the necessary short sale package to the lender.  However, the foreclosure auction date is looming.  If you have a strong and experienced agent and the offer meets the lender's criteria, the agent can often persuade the lender to postpone the foreclosure while the final details are worked out.
• Lenders rarely communicate regularly during the short sale process.  If weeks go by with no news from your lender, don't panic - this is perfectly normal.
• The lender will not accept the real estate agent's estimate of the current fair market value of your property.  They will pay for someone to provide an estimate of value - a BPO (broker price opinion) or an appraisal of your property.  This is a positive sign that the lender is seriously considering your short sale, otherwise, they would just foreclose.
• Price adjustments are routine during a short sale.  Our goal is to price the property low enough to make it attractive to the buyers so they make an offer quickly. We have very little time to get to the "right" price.
• Be patient.  During the short sale process, you'll have many questions like:
  
        - Will the lender accept the offer?
        - When will we hear if it's accepted? 
        - Will they release us from any further liability?
        - Will we beat the foreclosure deadline?

Relax.  Remain calm. Work on things you can control.  If you have a well trained and thorough agent, you are in good hands.

If you have any questions, please don’t hesitate to contact me.

Sincerely,
Lee Marlin
Keller Williams Realty Atlanta North

Tags: short sale process, negotiations, BPO, broker price opinion, appraisal, Georgia short sale, foreclosure, notice of default, notice of sale under power