The foreclosure rate is soaring in most areas of the country presenting incredible opportunities for pre-foreclosure real
estate investors or even first time home buyers! There are a number of ways the informed real estate person can profit
from homes facing foreclosure and one of the most lucrative is the pre-foreclosure or “SHORT SALE”

A SHORT SALE is a carefully agreed upon sale of a property, when a lender
is willing to accept less that the amount owed on it, because the borrower, due
to an acceptable hard-ship, is unable to make payments and the lender accepts
an offer to purchase from a 3rd party buyer, thus relieving the original owner
from all encumbrances and potential future liabilities.

A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow the Short Sale
because it has a better return on investment to them than a foreclosure. The average savings a lender sees from a
Short Sale property compared with a foreclosure property is considerable. In addition, the lender is also paid on the loan
many months earlier compared to allowing the property to actually go to the court house steps and foreclose.

As mentioned above, in order to be considered for a Short Sale by the lender the property owner will have to provide
proof of an acceptable Hardship. There are only certain situations that will be considered as valid reasons for default.
There are many to choose from but typical examples are; Death, Medical illness, marital difficulties, insolvency and
unemployment. Another important fact to note is that the Sellers cannot receive one penny from the Short Sale because
they are asking the lenders to take less than what is owed on their property.

Important items to understand related to purchasing a Short Sale property are many. Due to the overwhelming influx of
these types of properties on the market Lenders are having a difficult time providing quick responses to buyer offers.
The process typically goes like this. An offer is presented by your Realtor to the Seller, it is sent to the Lender for
approval. Before the Lender will approve the offer they will request a Broker’s Price Opinion (BPO) which is essentially
an exterior & interior appraisal. Once this is completed the Lender will review it and decide if the Buyer’s offer is
acceptable. If so, then we wait for their Loss Mitigation Department to once again either approve it, reject it or do
nothing. If they reject it then we can counter-offer or move on. The important thing to remember is that PATIENCE is
required of the Buyer of a Short Sale. While sometimes the Short Sale process can happen quickly, usually it takes
between 30 to 45 days or more from the receipt of the Short Sale package and buyers offer. In the end, the immediate
equity the Buyer will enjoy will be worth the wait.
As Real Estate Agents especially trained in Short Sales we at the “Schultz HomeTeam” are
ready to provide to you the service and attention that is required to complete these types of
transactions. Ultimately, benefiting you the savvy investor, first time home buyer, or Realtor
that just does not want to deal with the timeframes and the uncertainty of dealing with the
Lending institutions. Remember your success is our success!
In the link below you will find the most current and up to date Short Sales that are listed in the local Marco Island Area
MLS. Let our SHORT SALES TEAM work for you, simply give me a call, Frank Schultz Short Sale Specialist
239-821-3839

Happy hunting

Do not do business with anyone that guarantees or promises results- they simply can’t because
there is no way of knowing what discount a lender will accept.