This Information is Intended for Real Estate Agents and Their Buyers Who May Be Interested in this Property
Dear Buyers & Agents,
We are happy that you are interested in one of our short sale listings. If you are a buyer who is not under a specific time line to buy and you are considering making an offer on this property, you should not hesitate in doing so as long as you are aware that it usually takes 8-12 weeks to acquire an approval. Our success rate on Short Sales is very high. In fact it is over 90%! Therefore the likelihood of this one getting accepted is also very high. We have a list of rules, points and recommendations below that will dramatically increase the speed and likelihood of obtaining an approval. Given the costs that we are asking the buyer to incur, it is best if they subtract them from the amount they wish to offer on the home. This way the buyer does not feel as if they are unfairly consuming expenses that they should not be. After all, short sales are usually the best priced homes on the market and often times can be purchased at a considerable discount!
Short Sale Definition: A short sale occurs when a mortgage company agrees to accept less than they are owed for an outstanding loan.
Writing an Offer on a Short Sale!
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Important Points:
Timeline:
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A) Buyer and Buyer’s Agent must understand that we will not have an answer before 30 days from the time that we submit the package. The package is submitted after inspection is complete and Purchase & Sales Agreement is signed. Therefore it is in the Buyer’s best interest to do the inspection and sign the Purchase & Sales Agreement ASAP.
B) Inspection needs to be within 7 days of offer and Purchase & Sales Agreement needs to be within 10 days of offer.
C) Mortgage contingency needs to be 21 days post lien holder(s) approval.
D) Closing needs to be within 30 days post lien holder approval.
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Closing Costs: The Seller will NOT pay closing costs, repairs, home warranties, etc. There cannot be any closing cost credits to the Buyer.
Offers: Seller will only accept one offer and we will only submit one offer to the bank. All subsequent offers will be back up offers only.
Offer Documents: We will need the following: Updated Letter of Pre-Approval, deposit check, proof of down payment, Short Sale Acknowledgement Form, Mandatory Agency disclosures, lead addendum (if applicable) and the Offer must be written on our Pre-Typed “Offer to Purchase Real Estate” form.
Deposit: Earnest money deposit must be a minimum of $1,000.
Contingencies: All contingencies except the mortgage contingency must be removed within 10 days after acceptance of offer. Again Mortgage contingency must be 21 days post lien holder(s) approval.
Personal Property & Adjustments: No personal property can be included in the sale. Any adjustments other than real estate taxes which will be paid by the seller must be done with a personal check from the buyer.
Arms Length Agreement: Buyer cannot be related to the Seller in anyway. If your Buyer should have the same last name as the Seller, we will need a sworn affidavit that there is no relationship. Buyer and Buyer’s Agent may be required to sign an Arms Length Agreement at closing from Sellers’ lender.
Lender Negotiation: Marsee Wilhems Group (EXP Realty) will submit the offer to the lender(s) within 24 hours of the first business day after home inspection and Purchase & Sales Agreement is signed. We will continue to follow up often with the lender(s) and be sure they are working on this file. Marsee Wilhems Group (EXP Realty) has a high success rate but approval cannot be guaranteed. It is very unusual for it to take longer than 12 weeks to obtain an approval, but it does occasionally happen.
Buyer’s Agent Commission: Buyer’s Agent commission is guaranteed to be 3%. We always strive for 6% and it is usually obtained in most of our short sales. Marsee Wilhems Group (EXP Realty) does not outsource the short sale negotiation process and invests a tremendous amount of time and resources into its negotiation efforts striving and usually achieving expedited success.
Clear Title: After the Purchase & Sales Agreement is signed by all parties; Seller will be contractually obligated to provide clear title which will require lien holder approval. Should Seller not be able to provide clear title then the Purchase & Sales Agreement will be terminated and Buyer’s deposits shall be returned with no further recourse to either party.
Buyer Information: Depending on which lender services the loan on this property, we may need information about the buyer in order to submit the short sale. Information required usually consists of typical things like name and address. It can also consist of SS number, etc. Please make sure you are aware and prepared for this should it come up.
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Please note: ALL offers must be submitted with a Pre-Qualification from Rob Purvis at Gateway Funding (520-747-2007). A pre-escrow has already been opened with Cathy Kerege at First American Title (520-575-1900). Please ensure that your offer specifies First American Title as the Escrow and Title company.
To submit an offer, you must include the Short Sale Acknowledgement Form attached to the MLS listing under additional docs or download it from here. Please submit all offers via fax to 520-885-9020.
If you have any additional questions, please feel free to email Ray Laker, our Short Sale Specialist/Agent, at [email protected].
We truly hope to hear from you soon!
Sincerely,
Marsee Wilhems, Broker/Owner
Marsee Wilhems Group
EXP Realty
Good Luck and Happy House Hunting!
