How to Short Sale Your House

Hi there. My name is Carter and I’m owner of CB Home Solutions. In this video, I’m going to go over the process of a short sale to get rid of a property of yours that you might be underwater on the mortgage. You might be looking at going into foreclosure because you’ve missed payments and you cannot catch up on your payments. So the process with a short sale on a residential house is when you reach out to us. We are a real estate investment company here in the Fox Valley and surrounding area.

In order to short sale your property, you have to receive approval from your bank. The first step would be to contact us. From there, we typically get you in contact with our short sales specialists whose names are Gabe and Janet. They will take you through the information that they will need in order to get the process started and everything like that. They will get it up and running and be in communication with you and I, keeping us all in the loop. But ultimately, in the end, we will be the ones purchasing the property from you because we are local real estate investors and we can help you even if your property is underwater or your underwater on your mortgage.

So like I said, the step number one is reach out to us, have a brief conversation, we can introduce you to Gabe and Janet, the short sale specialist. And then after talking with Gabe and Janet, they will collect old pay stubs from you, W2s, tax returns. They’ll need a note stating what had happened, why you fell behind on your mortgage, everything like that. They’re going to request all this information from you. They will give you a sheet that breaks it all down on exactly what they need.

And then from there, we will submit an offer through Gabe and Janet because they are also real estate agents for an offer to purchase your property. So with that, typically what’s happening is even though you are still the owner of the property, a short sale is between us in the bank. They are going to be the ones who we negotiate with on price because it’s already underwater, so when you are underwater on your mortgage, we start negotiating with the bank. So our original first offer is going to be significantly lower just to see what the bank is willing to come down to. After that, we will come up on our offer in most cases, unless the property is very dilapidated and in tough condition. So when we make an offer, the first one will be extremely low. We wait for the bank to come back with a counter-offer or see what they do.

Now, once the bank gets the accepted offer, they do either what’s called an appraisal to justify the value of the property or they do a Broker Price Opinion or otherwise known as a BPO to justify the value of the property. With that, once everything is done, the bank will receive some sort of value and then they’ll take a percentage of that and then they’ll come back to us with their counter-offer. Gabe and Janet will keep you in the loop. Every step of this process you’ll be updated as will we on what’s going on, what’s happening. And then depending upon how things go, we can’t always guarantee that we can buy the property because the bank’s value might be too high for what we’re comfortable with. Because as real estate investors we’re buying things to make a profit. That’s just the name of the game. That’s how things go.

So say they come back with a value that we can accept, we would accept it and then go from there. As is every other real estate transaction, we would go through the title company, sign documents, it would now be ours and you’ll be free and clear of the property and you only have a short sale on your record instead of a foreclosure. Say the bank comes back with too high of a value and we can’t purchase it anymore, then Gabe in Janet, since they are real estate agents, will put it back out on the market and they’ll get some buyer to come in and buy it. So then you don’t have to worry about it anymore.

One way or another, you’re going to be able to sell your property you’re behind on your mortgage and you’re going to be able to get out of foreclosure, which is ultimately what you want to do. So if you have questions or you have a property that you’re possibly interested in selling and you’re behind on payments, or you’re upside down in the mortgage, please fill out the form below, fill out your information, and I’ll be in contact with you just as soon as I can. Thanks and have a great day.

How to Short Sale My House
Video Transcription
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