Foreclosures and REO's
Epic Properties Group specializes in the sale and purchasing of Distressed Properties. If a Short Sale Listing does NOT sell within the bank's specified amount of time (schedule), the bank will foreclose on the property by repossessing the home as security against the defaulted loan, with the intention of selling the property on the market. This property now becomes a Bank Owned property or REO (Real Estate Owned). An REO sale is generally a much quicker process than the short sale, because the former owner and a possible second lender have been removed from the equation. The bank will often times approve or counter an offer within a week. Some banks will sell a home as is, and will not pay for any repairs whatsoever. In this case, the buyer needs to make sure they conduct their inspections during the contingency period so they can make an informed decision whether to proceed or withdraw while they have that contingency window in their favor.
Contact Us for an up to date list of bank owned properties.
Short Sales
Epic Properties Group specializes in Short Sale transactions. Our team has Certified Distressed Property Expert (CDPE) training and has an excellent track record with closing Short Sales with strong negotiating, education and management of every aspect of the transaction. If you would like more information on how we can assist you, please contact us. You need to make the right decision when choosing whom to list your home with for the Short Sale. You want to be sure you have selected a team that understands and has successfully executed many short sales.
The short sale process continues to be a mystery to many people. In basic terms, a short sale is when a property is sold for less than is owed on the mortgage. Many people believe that they need to miss payments in order to qualify for a short sale. This is not necessarily true. In fact, less missed payments can minimize the damage to the seller’s credit. The most important factors are that there is a legitimate hardship and the property is worth less than is owed.
The Basics of a Short Sale
In order for a bank to approve a short sale they will need to determine that the seller has a hardship, which is making it difficult to make the payment. This is communicated to the bank through a hardship letter. A few examples of a hardship are:
Unemployment / Reduced income
Divorce
Medical Issues
Job Relocation
Bankruptcy
Death
Emotional Stress
A financial package is then submitted to the short sale bank. Each bank has its own guidelines and the basic procedure is similar from bank to bank. The seller's short sale package will most likely consist of:
- Letter of authorization, which lets your agent speak to the bank.
- HUD-1 or preliminary net sheet provided by a Title Company
- Completed financial statement (Profit/Loss, Assets and Liabilities)
- Seller's hardship letter
- 2 years of tax returns
- 2 most recent pay stubs
- Last 2 months of bank statements
- Comparative market analysis or list of recent comparable sales
After the seller accepts the offer, the listing agent will send the following items to the bank:
- Listing agreement
- Executed purchase offer
- Buyer's pre-approval letter and copy of earnest money (deposit) check
- Seller's short sale package (This can usually be sent in ahead of time to make the process more efficient)
The Short Sale Process at the Bank
Following is a typical short sale process at the bank.
1. Bank acknowledges receipt of the file
2. A negotiator is assigned to the file
3. A BPO (Broker Price Opinion) is ordered. The BPO assesses the value ofthe property.
4. The file is sent for the review process. This can take 2 weeks to 30days.
5. The bank may then request that all parties sign an Arm's-Length Agreement.
6. The bank issues a short sale approval letter
7. It is critical that we negotiate with the bank to include in the approval letter that they waive the “deficiency judgment” especially on 2nd loans so the borrower is released from banks’ ability to collect the deficiency later
8. The Buyer then begins their loan process and closing is typically 30 days after full approval.
(Some lenders are pre approving short sales in order to move the process along more quickly.)
Epic Properties Group builds excellent relationships with lenders and negotiates on many short sales. We have Certified Distressed Property Expert (CDPE) training which allows us to educate and walk our clients Through each step of the process. Our short sale clients are glad that they used our team to negotiate with on their behalf. Contact us for a free, no obligation, confidential consultation where we can answer any questions that you might have and help you explore all of your options. Contact Us to find out why you should choose Epic Properties Group to list your Short Sale and negotiate for you!