Short SalesA Buyers Presentation

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What is a Short Sale?

The home may be over-leveraged or “underwater” The seller may behind on payments and cannot sell for high

enough to cover what is owed plus other required fees to close.

Lenders created short sales as a foreclosure alternative Lenders would rather allow sellers to short sale versus

foreclosing. Foreclosing on properties costs lenders money

. There is more debt owed against a property than the property’s value. In a loan default situation, (pre-

foreclosure) the creditor(s) may be willing to agree to allow the property to be sold for less than the loan

amount and/or accept less than (or “short”) the amount owed as payment in full.

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Should You Place An Offer On A Short Sale ?

Do not have a home to sellAble to wait weeks or months before

receiving an answer to their offerFlexible on termsFlexible on closingWilling to purchase a home AS-ISHave solid financing with no financing

restrictions such as excessive contributions

Short Sales transactions require buyers who meet specific

qualifications.

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How Does A Short Sale Differ From Other Transactions?

Short Sales have a longer approval process because:

Seller must qualify for a hardshipSellers must provide documentationAn evaluation of market value must

be conducted by the seller’s lenderMore parties are involved in the

approval process

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Parties Involved In A Typical Real Estate Transaction

AGENTS

TITLE SELLER BUYER

APPRAISER

INSPECTORS

LENDER

UNDERWRITER

INVESTOR GUIDELINES

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Parties Involved In A Short Sale Transaction

AGENTS

TITLE

LIENS

SELLER

HOUSING COUNSELOR

LOAN SERVICER

CUSTOMER CARE

CENTER

SHORT SALE DEPARTMENT

BPO/APPRAISER

LITIGATION

MORTGAGE INSURER

MORTGAGE INVESTOR

PRIMARY

POOL

CLOSING DEPARTMENT

BUYERS

INSPECTORS

APPRAISERS

BUYERS LENDER

UNDERWRITER

INVESTOR GUIDELINES

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Why Should I Place an Offer On a Short Sale?

There are no other properties available in the areas they want to live

Property contains most of the items on their wish list

Condition of the property Not willing to purchase a home

without property disclosures Looking for a property under market

value Not in a rush and flexible on closing

date Not concerned if their offer is

rejected

Most buyers place offers on Short Sale Properties for one or more of the following reasons:

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Searching For The Home

Locate all properties that meet your needs including Short Sales

Qualify the Listing Agent Collect market data Compare the Short Sale Property with Your

Needs Provide you with community, city, and school

Information Schedule showings Help you complete the paperwork Present your offer Schedule inspections Make sure you get timely updates on the

progression of your offer Manage the transaction

Your Agent Will Help You

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Submitting An Offer

Purchase contractShort Sale AddendumAS-IS AddendumFully Completed Loan Status

Report or a Loan ApprovalVerification of Funds If Paying

CashAny Other Required Disclosures

Your Real Estate Agent Is Here to Assist You!

What you will need to submit an offer on a Short Sale:

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Why Your Agent is Best?

They Know this niche marketThey Know how to locate the

right property for youThey Work with a team of

Experts who are familiar with Short Sale Transactions

They are Ethically Obligated to Protect Your Interests

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In Conclusion

Purchasing a Short Sale home may require a little more patience and additional documentation submitted with your offer, but it just may be the path to finding your next great investment property or your family’s dream home.

Buyer Qualification Form ARE YOU WILLING TO WAIT FOR AT LEAST 60-90 DAYS FOR AN ANSWER TO YOUR OFFER?

YES / NO   DO YOU HAVE A HOME TO SELL? YES / NO   DO YOU HAVE ALTERNATE PLANS, IF YOU DO NOT HAVE A RESPONSE TO YOUR OFFER IN 60-

90 DAYS? YES / NO IF YES..WHAT ARE YOUR PLANS? _________________________________________________________________________________________________

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  MY SHOWING POLICY IS TO PLACE AND MANAGE ONE TRANSACTION FOR YOU, ARE YOU

WILLING TO PAY AN UPFRONT NON-REFUNDABLE RETAINER FEE OF $_______ FOR MULTIPLE VIEWINGS AND/OR MANAGEMENT OF ADDITIONAL PROPERTIES AFTER YOU SUBMIT AN OFFER ON A PROPERTY? YES / NO

  ARE YOU COMFORTABLE WITH PURCHASING A PROPERTY AS-IS? YES / NO   HAS THE LENDER YOU SELECTED PARTICIPATED AND CLOSED A SHORT SALE TRANSACTION

IN THE LAST 60 DAYS? YES / NO UNKNOWN   ARE YOU WILLING TO PLACE BACKUP OFFERS ON PROPERTIES? YES/ NO   ARE YOU WILLING TO PLACE A FULL PRICE OFFER ON A SHORT SALE? YES / NO   IF YOUR OFFER IS IGNORED OR REJECTED BY THE SELLER’S LENDER, ARE YOU WILLING TO

LOOK AT OTHER SHORT SALES? YES / NO BUYER: _______________________________________________DATE___________________________ BUYER: _______________________________________________ DATE __________________________ AGENT: ______________________________________________ DATE __________________________

Contact me with any questions. I am here

to assist you.

Mario J SaraccoProfessional REALTORNew Venture Realty,LLCBus: (623)889-3665

Cell: (623)215-5732azrealestatebymario@gmail.com www.azrealestatebymario.com

“Prompt, Professional, Priority Service”!