Anchorage Alaska Real Estate 907-720-4663

Short Sale Approval can take a long time. After a short sale home has an accepted offer, the listing real estate agent submits a shortsale packet, complete with the the application, a hardship letter, paystubs, w-2's, income tax statements, and possibly other items, depending on the situation. Short sale offers are submitted to loan mitigators, who are usually in charge of over 300 files. These shortsale mitigators will look through the files and if there is ANYTHING missing, expect that file to be put at the bottom of the stack.  It's important that Short Sale Agents understand the importance of getting each and every piece of paperwork to the mitigator at the same time!

Short sales are usually priced below market value because the properties need to sell, FAST.  Short sales are usually in better condition than foreclosed properties since they are usually still occupied at the time of sale so the appliances and utilities are still in use.

I have a short sale listing that instantly had multiple interested parties.  After going through the offers, the seller chose the highest and best offer, which was way above list price. Sounds great so far, right?

Up to that point, short sales are easy. It's the part in dealing with the banks and mitigators that can be tough. The bank mitigators duties are totally out of Real Estate Agents' hands. Sometimes they say it'll take two weeks for a reply and it takes them 4 weeks. When buyers are dealing with short sales, it's crucial that they are prepared for this type of wait. If they are prepped for this, the wait won't seem so bad. If not, it might be a good idea to move on to the next property. Short sales are not your typical real estate transaction, that's for sure!

If you are having a tough time paying your mortgage, it's important to seek help right away, whether it be through a loan modification or short sale, don't hesitate to call Vanna with your questions.... 907-720-4663

Do you qualify for a short sale? In Anchorage, AK, we've been lucky.   We have not experienced the huge wave of foreclosures and short sales that many parts of the Lower 48 have. However, a term that has gotten much publicity as of lately has been "short sale." Although short sales are not anything new, the term "short sale" was barely heard of just 2 years ago. 

Some sellers are confusing short sales with the ability to walk away from a property free and clear. They liken it to asking the lender for a "forgiveness" and the lender will forgive and forget. However, it doesn't work that way. Shortsales can be a great solution if you qualify. But a shortsale does have its consequences, such as a big hit to your credit score and the possible tax consequences. The overall transaction can also take a long time. So if you know that you are going to do a shortsale, prepare yourself.

What is a shortsale and who can qualify for one? A short sale is the sale of a property in which the lender has agreed to take less than what is owed on the property. The property is usually in pre-foreclosure status and a lender will sometimes grant this because it would be less costly for them than going through the whole foreclosure proccess.

What qualifies for a short sale? Someone who can say yes to all of these:

• The owner has experienced some hard times. In this situation, the owner (seller) would have to supply the lender with a letter of hardship, outlining why the seller cannot or has not been making mortgage payments. The letter of hardship should also include why the seller (owner) cannot make up the difference by bringing a check to closing, in order to pay the loan in full after the house sells. Some examples of hardships include the loss of a job, divorce, bankruptcy, medical emergency, or death.
  
• The home's market value has dropped so low that the unpaid balance of your mortgage is more than the market value of your house (plus commission and closing fees).
  
• The Mortgage is in (or very close to default).  It used to be that lenders required home owners to be in default before they could submit a letter of hardship and an application for a shortsale. Now, some lenders are allowing short sale applications, before a homeowner is actually in default. It's a good idea to check with your Mortgage Company about this.
• The seller does not have any assets. The lender will have to see that the seller does not have any asset in which to draw funds from to make up the shorted difference.

A shortsale does not work like a regular real estate transaction.  It can take a looooong time to close. If you are having a hard time making your mortgage payments, contact a professional right away, whether it is your lender, attorney, or Realtor. Sometimes it's impossible to get through to your lender, but there are companies out there that can help with things like loan remodifications.  The important thing is to ask for help before it's too late.

For help with all your Anchorage and Eagle River Real Estate needs, call Vanna 907-720-4663

For your short sale questions, contact Vanna at realty@homesbyvanna.com or 907-720-4663

To get an e-mail of the most up to date list of Short Sales or Foreclosures in the Anchorage or Eagle River Area call 907-720-4663