The Step by Step of a Short Pay Sale
“There is no greater service, in my opinion, than helping a client with a Short Payoff. This is a very difficult time and there is no one better than a Realtor who specializes in Short Payoffs to help cure the problem. A Realtor who specializes in Short Pays has vast knowledge and charges the homeowner nothing for his service. It is all paid for through the lender only if the transaction is successful and a knowledgeable Realtor can at times help to negotiate paying your other outstanding debt as well as costs to move.”
The first step is for Brian to review all the liens on your property and view the property. Once a price is established there is a clear understanding of whether or not a Short Pay may be necessary. Many homeowners do not realize that a Short Pay may be a possibility because of a lack of knowledge in closing costs and how rapidly the market may be dropping.The homeowner will be requested to provide a letter with the account number(s) and property address to the lender giving Brian authorization to communicate with the lender(s) in facilitating a Short Pay. The homeowner should supply a list of all delinquent payment including utilities, property etc… The next step is to get the homeowner approved as a candidate for a Short Pay. A checklist will be provided of all the required documents for the lenders consideration including a hardship letter.
Once the lender has approved of the homeowner as a Short Pay candidate, Brian will then perform a Broker Price Opinion. This is similar to an appraisal for a lender to establish a list price on the property. This is critical because pricing a property without the lender’s approval could lead to overpricing. This could cause a bigger loss if the market declines. The lender may then request more money and the homeowner is now faced with the problem of re-marketing at a higher price. This does not go over well with prospective buyers and agents.
At this point, Brian’s exceptional marketing plan comes into play and the sale should follow the flow of a normal transaction. The Seller should review any possible tax consequences with a tax specialist.
Buyers will be required to provide a Pre-Approval letter as well as proof of funds with any offer. A net sheet will be prepared and submitted to lender(s). Once approved by lender it then proceeds to escrow and should close within a normal escrow period.
For a detailed analysis of how much your property is worth and to discuss the possibility of a short payoff please contact the office. The team looks forward to helping you out of a difficult situation with care and confidentiality.
Why Choose Brian?
Brian closed the biggest, single-family, short sale in history! With 18 liens, totaling over $11.5 Million, Brian’s expertise was called in to help avoid foreclosure and close this deal!
His vast knowledge of the Short Payoff process has brought him to educate other agents through his seminars on how to perform Short Payoffs successfully. Brian specializes in Short Sales throughout Los Angeles County. He is known for his follow-up, strong marketing skills and extensive knowledge. He carefully focuses attention in representing short payoff clients with banks, insurance companies, asset managers and loan service providers. Over the past 25 years he has built a reputation that has earned him the thanks of many homeowners. Brian was the number 1 agent in the United States for providing lender property evaluations in 2000, 2001, 2002, and 2003. A member of NRBA and a specialist in Short Payoffs Brian has worked with many lenders: EMC, Freddie Mac, Fannie Mae, Countrywide, Litton, Chase Manhattan Bank, Washington Mutual, Bank of America, Fleet Bank, Wells Fargo, H.S.B.C., and CitiBank … to name a few.