Rick Snyder Earns NAR Short Sales and Foreclosure Certification
Buyers and Sellers Benefit from REALTOR® Expertise in Distressed Sales Boise, ID — Rick Snyder with Silvercreek Realty Group has earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS® offers the SFR certification to REALTORS® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.
According to a recent NAR survey, nearly one-third of all existing homes sold recently were either short sales or foreclosures. For many real estate professionals, short sales and foreclosures are the new “traditional” transaction. REALTORS® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.
“As leading advocates for homeownership, REALTORS® believe that any family that loses its home to foreclosure is one family too many, but unfortunately, there are situations in which people just cannot afford to keep their homes, and a foreclosure or a short sale results,” said 2009 NAR then President Charles McMillan.
“Foreclosures and short sales can offer opportunities for home buyers and benefit the larger community, as well, but it’s extremely important to have the help of a real estate professional like a REALTOR® who has earned the SFR certification for these kinds of purchases.”
The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help REALTORS® stay current on national and state-specific information as the market for these distressed properties evolves. To earn the SFR certification, REALTORSÒ are required to take one core course and three Webinars. For more information about the
Breaking down Short Sales For the next few entries I am going to explain the process to sell your home as a short sale. Not going into what a short sale is, but what is involved to get your home on the market and take contracts.
A bank short sale is a different animal both to take as a listing and to negotiate prices and Earnest Money agreements. The Bank must agree to allow the sale and we need to gather certain documents prior to the sale.
We will discuss the following documents needed:
• The Bank Authorization
• Seller Proposal Letter
• Seller Hardship Letter
• Seller Financial Worksheet
• Listing Documents
• Comparative Market Analysis
• Short Sale Listing addendums
our next few entries will include these breakdowns. We will also discuss why it is good to go with a Realtor that has Experience with these types of transactions! As we discussed in the previous post yesterday, short sales are probably one of the most times consuming sales to deal with. The amount of energy before the home goes on the market probably takes more than half of the time constraints. Getting all of your information together ahead of time will make or break the deal.
Bank authorizations are a key piece of documentation that has got to be signed in order for the Realtor agent to communicate with the lean holder of the property. It allows communication back and forth and keeps the seller out of the negotiation process. This prevents any personal feelings from entering into the transaction.
The seller financial worksheet is what the home owner owes for all of the assets. This must be true to the best of the seller’s ability. Any asset such as cars, credit cards, medical, and including utilities etc. This worksheet places everything on paper that the lean holder can evaluate the current state of the seller’s financial situation.
Bank short sales of course, are where the seller of the property is requesting the bank to allow the sale of their home for much less than the original lien note was secured. Selling short is not a right of the seller, banks decide on an individual basis whether or not to allow the sale. It is of the utmost importance to have the full cooperation of the home owners in order for the Realtor to ask for a short sale.
One of the most important pieces of documentation is the “Hardship Letter”, this is a gathering of all reasons the owners are not able to continue on the present course. In writing the letter included documentation must be any reasons for the current financial position of the seller. This would include job loss, medical bills, and poor sales in the case of being self-employed.
Your Realtor will then write a proposal letter to the bank or lien holder giving reference to the hardship letter, but mostly documenting the current state of the loan such as what is owed how far behind etc. This letter will lay out the plan of action for the sale of the home which includes the listing price, marketing plan and any liens that may be or could be encountered.
The final area of the sale would be the actual listing of the property including all pertinent MLS documentation, market analysis or comparative sold prices and short sale listing addendums.