An introduction to Short Sales

Well? Here I go.


I'm a lot more of a face-to-face people person. Those who know me will report that I'm all about the hand-shake, the slap on the back, and so on. It's not that I dislike technology; I love it, in fact. It's just that this Internet blog stuff hasn't been my style...until I realized it was needed.

Regardless, this spring break I realized just how busy I am, and how that limits my ability to reach out and share all that I've learned. So here I am: blogging. Who knew?

For better or for worse I've elected to specialize, focusing on spending the past few years learning everything I can about just one topic (real estate short sales), and as a consequence, I'm today mobbed by people, across the US, seeking advice and assistance. We are saving families every single day.

In response I created a team, and expanded that team's ability to quickly answer inquiries, via web, phone, and email. That's a good thing, in that: we are able to help home owners develop a needed competency. Our Fridays are a real celebration, where the group hoops and hollers about how another week has elapsed without a single foreclosed home.

But being busy has proven a frustration in the way it's caused increasing difficulty for me to directly share all the little things we learn on a daily basis. And, like I said: I'm a real people person, who enjoys reaching out and touching people directly.


So here I am: blogging. A 21st-century solution for a fellow who enjoys doing business the 19th century way: face to face. We make the most with what we have.


Ok....where to start? How about at the beginning?

Let's acknowledge that short sales and loan modifications are very complex and confusing for many people. This blog will serve as a reference for those who seek a short-cut for becoming "short sales experts" in their own right, thus enabling them to better respond to challenges they may be facing.

The blog entries on this site will boast a language and style that reflects our most current understanding of how to maximize success while minimizing stress, based on our experience. However, as a person who enjoys learning, I warmly welcome your comments regarding how to streamline or improve upon some of the steps or recommendations. Even though people have taken a fancy to calling me an "expert," I know that one only remains so by keenly listening to others.

In other words: your feedback is valued.



The mission of my team (Short Sale Connections) is assist you (the home owner) in processing a request for a short sale or loan modification with the lenders. Please keep in mind that my team's employees are not real estate transaction coordinators, and your agent is responsible for obtaining documents from you, the homeowner, as well as any and all real estate documents from all parties. Just to make sure we are understood, assuming that at some point we decide to enter into agreement with each other.

That aside, let me tell you that your participation is critical in this process! Many people on the verge of foreclosure tend to procrastinate, and you know what? That's absolutely and completely understandable. I would bet that most people don't purchase a home, and get emotionally vested, only to lightheartedly let it go a year or two later.

More likely, you purchased your home, and life served a reversal, or a series of reversals, you didn't anticipate. At first the bills are paid late, then the mortgage gets behind, and you developed a coping skill of lending a blind eye to things that, normally, they'd assign proper attention. You're undoubtedly not proud of this behavior, but it's an extremely common byproduct of the financial situation responsible for the current situation.


It's extremely helpful to communicate that a short sale is a process where we work with the lender or lenders to accept a payoff for less than what you owe. This means that the lender, if they choose to approve, will accept a lower offer than what you owe on your mortgages. Explaining it in this way may help alleviate some stress, shame, and pressure you may be experiencing:

With as short-sale, we leverage current market data to demonstrate to their lender that the market may no longer bear what you owe on your home. From the lenders perspective, offering to pay them less what is owed, but still consistent with the property's real market value, is often a vastly more attractive option to foreclosure. In other words: we're facilitating a win-win proposition for all parties, taking into account contemporary market realities.

You will qualify for a short sale by demonstrating you have a financial hardship which has caused you to no longer be able to make the requisite monthly payments. In the event that you request a loan modification, we will work with your lender(s) to modify the terms of their existing loan(s) so that you could possibly keep your home. This is subject to the lender or lenders’ approval, but still: in most cases these few facts will make you feel a heck of a lot better. We are buying you time, and allowing you breathing room.

Currently, the industry standard to complete a short sale is 60-90 days from a complete short sale submission. A tight and functional relationship between you and my team enhances our success rates and expedites our ability to close.

Frequently, homes that are offered as short sales need repairs, and may have had the utilities shut off due to lack of payment, and again: this makes sense. The last thing a person decides to pay is their mortgage. Chances are, you've let your health insurance go, your utilities, and so on. It's not unreasonable to find a home that requires some repairs.

Please keep in mind that the reason why someone is requesting a short sale is due to a serious financial hardship. Accordingly, sellers will not have the funds to make repairs needed for the property, nor will they be able to turn the utilities back on, and in this regard these kinds of transactions are a little different than what most agents and buyers may be used to. It is therefore the buyer’s responsibility to turn on utilities and to make any necessary repairs to the property. Buyers need to be aware that the property is listed “as-is” and everything is “Subject to third party approval”.

It takes resourceful, committed, and caring Realtors to succeed at short sale negotiations. It can be a long and drawn out process! However, given the need of many clients, developing this market competency will greatly increase your business, because let's face it: from the buyer's perspective "short sale" properties represent a compelling alternative to "full retail" homes also on the market.


Hey, assuming this blog transitions you and I into colleagues, I sincerely appreciate your time, hopefully your business, and patience throughout this transaction. I look forward to working with you to obtain a positive result for you and your family.




Nick.