What's the First Step in A Naperville IL Short Sale?

What's the First Step in A Naperville IL Short Sale?

Before you ask your Naperville IL short sale agent to place your short sale listing into the MLS, it’s important to know the first step in the short sale process.

Don’t make the big mistake of other overly anxious sellers who skip the first step of the short sales process and immediately jump into accepting offers.  More often than not, this less-informed method only leads to more stress and anxiety.  Take the time to learn about the important first steps in the short sale process, and you will be in a stronger position to consider the right offers.

The first thing you should do, with the help of your short sale agent, is to identify what type of short sale you have.

The secret to identifying what kind of short sale you have lies with your lender and the type of mortgage loan on your home.

Here is a step-by-step checklist of the first things you should do in the short sale process:

• Contact your lender. Start by calling your lender’s customer service number and ask for the Loss Mitigation Department. Have your mortgage loan number ready.
• Request for the lender's authorization form. This will allow your Naperville IL short sale agent to speak to the lender on your behalf. Send back the signed authorization form to the lender as soon as you hire an agent. It takes up to 5 days for the lender to acknowledge your authorization letter, so don't delay.
• Ask your lender what type of loan you have. Find out if your bank owns the loan or if it is merely a servicer of the loan. If your bank is just the servicer, ask the bank who owns your loan.
• Depending on the type of loan, choose your type of short sale. Each short sale is different and if you choose the wrong type of short sale, you risk facing personal liability and losing out on possible relocation assistance funds.

Here are some of the different types of short sales based on the type of loan and the short sale seller’s personal situation:

• HAFA Short Sale - This is only available to sellers of a personal residence who are going through a severe financial hardship and have limited cash assets. The HAFA short sales aim to streamline the short sale process, release the seller from financial liability, and provide relocation assistance.
• Traditional Hardship Short Sale - The short sale seller’s hardship letter will be closely evaluated. Borrowers with loans that were originally purchase money loans have a better chance at a successful short sale.

Ask Teresa Ryan about these types of short sales in Naperville and the Chicago area market.

• Strategic Short Sale
• Fannie Mae Short Sale
• Freddie Mac Short Sale

These are just some of the several types of short sales. The best thing to do before proceeding with a Naperville IL short sale is to work with an experienced Naperville IL short sale agent who can help you navigate the short sales process.

If you are ready to do a Naperville short sale call me, Teresa Ryan at 630-276-7575. As a certified short sale agent and Broker/Owner of Ryan Hill Realty - www.RyanHillRealty.com, I have the experience and tools to help you sell your Naperville short sale home.

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Teresa Ryan

Broker/Owner, CDPE

Ryan Hill Realty

1288 Rickert Dr Suite 300, Naperville, IL 60540

630-276-7575

TRyan@RyanHillRealty.com

Questions to Ask A Short Sale Agent In Naperville

Questions to Ask A Short Sale Agent In Naperville

If you are considering something as serious and as complicated as a Naperville short sale, it is necessary to seek the help of short sale experts.

There are many short sale agents out there, and having too many options can get confusing and overwhelming.

Here are some questions you should ask a prospective short sale agent before hiring him or her to sell your home as a short sale:

• How many short sales did you close last year?

It’s easy for agents to take on many short sale listings but it’s tough to get these short sales approved by the lender and closed. Since your goal is to successfully close your Naperville short sale, then the agent’s closing ratio is very important. The average success rate in closing short sales is said to be between 15% and 45%.

• Are you personally involved in the negotiations or will you hire a negotiation company?
• Do you have a team or do you work alone?
• Do you make phone calls yourself?
• How often do you plan to update me?
• How long does it usually take to wait for an approval from the different banks?

Listen carefully to the agent’s answer to this one as it will show you his or her relationship with your lender.

While interviewing the agent, check their facial expressions and behavior as they answer your questions. Their answers will help you find the most experienced and best Naperville short sale agent for the job.

If you are ready to do a Naperville short sale call me, Teresa Ryan, a certified short sale agent at 630-276-7575.  As Broker/Owner of Ryan Hill Realty - www.RyanHillRealty.com, I have the qualifications, experience and tools to help you sell your Naperville short sale home.

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Teresa Ryan

Broker/Owner, CDPE

Ryan Hill Realty

1001 E. Chicago Ave., Ste. 103

630-276-7575

TRyan@RyanHillRealty.com

What is the BPO in a Naperville Short Sale?

What is the BPO in a Naperville Short Sale?

A BPO (Brokers Price Opinion), is similar to a home appraisal. Real estate agents prepare BPOs by doing an inspection of the property and researching recent sales of similar properties in the area and current market trends to estimate the short sale property’s current value.

Once the lender receives a short sale package, the lender requests a BPO from a real estate agent to assess if the offers for the short sale are reasonable.

The BPO is crucial to the short sale process and could make or break the transaction. To make sure it is handled correctly, your Naperville short sale agent should meet with the BPO agent to make sure they have all the information they need. This can be done by including notations in the file stating that the BPO agent has to contact the short sale agent in order to gain access to the property.

Your agent should also prepare a package to be handed to the BPO agent which usually contains a hardship letter, a comparative market analysis or appraisal, and anything that can reduce the value of the property - like damages.

The BPO agent should know that the purpose of the evaluation is a short sale approval. Try to get them as emotionally involved as possible to let them know that their evaluation of the property will have a big impact on your life by providing them with important facts.

Since the BPO has a huge impact on the outcome of the Naperville short sale process, the agent should be very knowledgeable on current market values of Naperville luxury homes in your area and understand the entire scope of the short sale.

If the agent is not very knowledgeable in this area, then their BPO may do more harm than good on your short sale.

An experienced short sale agent will know how to positively influence the value of the BPO for a better short sale outcome.

The best way to avoid these BPO problems is to work with an experienced and certified short sale agent from www.RyanHillRealty.com who knows and understands the process, and can help guide the value of the BPO in the right direction so you can get a favorable outcome for your short sale.

If you are ready to do a Naperville short sale call me, Teresa Ryan, a certified short sale agent, at 630-276-7575.  As Broker/Owner of Ryan Hill Realty - www.RyanHillRealty.com, I have the qualifications, experience and tools to help you sell your Naperville short sale home.

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Teresa Ryan

Broker/Owner, CDPE

Ryan Hill Realty

1001 E. Chicago Ave., Ste. 103

630-276-7575

TRyan@RyanHillRealty.com

What Is a Short Sale HUD-1?

What Is a Short Sale HUD-1?

A short sale can be frustrating for a seller who has no experience with Naperville short sales.

One of the unfamiliar terms a first-time short sale seller might encounter is the HUD-1.

What is a Short Sale HUD-1?

It is a document listing all the debits and credits in a real estate transaction. It is created for the benefit of the buyer and the buyer’s lender. However, that does not stop the short sale seller’s lender from asking for the HUD-1 during the approval process.

What do Banks Look at on a Short Sale HUD-1?

Banks focus on the sales price on an HUD-1. If the bank’s declared price is greater than that on the HUD-1, the seller needs to ask for a new purchasing price from the buyer. Other fees to be reviewed by the bank are the title, transfer, escrow, notary, documentary stamps, and delinquent property taxes.

Fortunately, not every lender requires HUD approval. Many junior lien holders do not approve HUDs because they are only concerned about the amount they will receive from the short sale.

The estimated HUD-1 Settlement Statement is a complete account of all the fees and prices involved in the short sale. This settlement form specifies how much money each party gets upon final transaction.

Do Banks Reject Fees on the Short Sale HUD-1?

Banks usually refuse to pay for items like repairs, home warranties, and pest clean up costs. Banks also refuse to pay HOA or UCC fees. Either the buyer of short sale seller needs to negotiate for the payment of the balance of these fees.

What is the Most Common Problem Associated with a HUD-1?

The biggest problem with a HUD-1 is failure to agree on which party pays for certain fees. This may cause confusion and tension between the parties when closing time comes and the sellers or buyers are required to pay for unforeseen fees.

To avoid confusion with the HUD-1, it is highly recommended that the HUD-1 be looked over by an professional Naperville short sale agent so any questions or concerns may be answered.

If you are ready to do a Naperville short sale call me, Teresa Ryan at 630-276-7575. As a certified Short Sale agent and owner/broker of Ryan Hill Realty - www.RyanHillRealty.com, I have the experience and tools to help you sell your Naperville home.

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Teresa Ryan

Broker/Owner, CDPE

Ryan Hill Realty

1001 E. Chicago Ave., Ste. 103

630-276-7575

TRyan@RyanHillRealty.com

How to Write An Effective Naperville Short Sale Hardship Letter

How to Write An Effective Naperville Short Sale Hardship Letter

A short sale happens when a homeowner sells his or her Naperville luxury home for less than what is owed on the mortgage. Short sales can save the seller from foreclosure and losing money because lenders don’t require the seller to pay the difference between what the selling price of the home is and the balance of the mortgage.

However, to qualify for a Naperville short sale, the seller must prove to the lender that they are going through a financial hardship.  The best way to do this is by writing a hardship letter.

What do lenders consider as a financial hardship?

• loss of employment or salary reduction
• relocation or job transfer
• death in the family
• major unexpected medical expenses
• divorce

Here are 8 tips on how to write an effective hardship letter:

1. The hardship letter must be signed and dated.
2. Include your Naperville home’s address and loan number in the header.
3. Keep it short and direct to the point. 5-10 sentences is enough.
4. State your financial hardship and the circumstances that make it impossible for you to continue your mortgage payments.
5. Make a strong case and make sure to let the lenders feel that there is nothing more you could do about your case and why it will be permanent.
6. Never blame your lender for your hardship.
7. End the letter with “a short sale seems to be the only solution for us to avoid foreclosure” or “please consider a short sale on our Naperville home since we can find no other solution to our circumstances.”
8. Don’t forget to sign and date it!

It is important to have an experienced Naperville short sale agent guide you through the short sale process and help you write a hardship letter that your lender will accept.

If you are ready to do a Naperville short sale call me,  Teresa Ryan at 630-276-7575. As a certified Short Sale agent and owner/broker of Ryan Hill Realty - www.RyanHillRealty.com, I have the experience and tools to help you sell your Naperville short sale home.

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Teresa Ryan

Broker/Owner, CDPE

Ryan Hill Realty

1001 E. Chicago Ave., Ste. 103

630-276-7575

TRyan@RyanHillRealty.com

Why You Need A Short Sale Agent For Your Naperville Short Sale

Why You Need A Short Sale Agent For Your Naperville Short Sale

How can a short sale agent help me with my Naperville short sale, you ask?

Short sales are more challenging than your traditional real estate sales because of all the different guidelines, paperwork, and parties involved, not to mention the length of time it takes to complete a short sale. Lately, there have also been tax implications on short sales due to the expiration of the Mortgage Debt Relief Act in 2013.

It’s easy to get overwhelmed and even discouraged when doing a Naperville short sale, especially if you are already going through a financial hardship. That is why you need the help and expertise of an experienced Naperville short sale agent.

Here are some of the things a certified Ryan Hill Realty short sale agent can do for you to help you complete a Naperville short sale:

1. Your short sale agent will help you gather and send a complete short sale package to your lender. Every lender has different requirements and guidelines for short sales. A lot of short sales get rejected by lenders just because of incomplete short sale packages or missing signatures. Only an experienced short sale agent will be able to help make sure that you are not missing anything important. Your short sale agent will also request your most recent paystubs and updated bank statements to send to the lender to help prove your financial hardship.


2. Your Naperville short sale agent will order the HUD and send it to your lender/s.


3. An agent can coordinate with the lender to get a Brokers Price Opinion (BPO).


4. Only an experienced short sale agent can prepare a Comparative Market Analysis (CMA) that will be the basis for the selling price of your Naperville short sale home.


5. A short sale agent can check regularly with the lender on the status of the short sale and whether they need any more documents and give you weekly updates on the status of the short sale.


6. A short sale agent can negotiate the offer price as well as lien payoffs with lender or lenders, if you have more than one loan on your home.


7. If there is a second lien holder involved in your home, the short sale agent can negotiate with them regarding their demands and comply with the demands of your lenders, however extreme they may seem.


8. Your short sale agent will also send regular updates to the buyer’s agent on the status of the short sale to keep them from getting impatient.


9. A short sale agent will order the preliminary title report.


10. Once the short sale approval letter arrives from the lender, your short sale agent will review it to make sure it matches the HUD and will deliver the approval letter to all the parties involved in the short sale.


11. The short sale agent will coordinate access to your home for the buyer’s home inspection.


12. Your short sale agent will review all closing documents and attend the short sale closing with you.

Short sale agents can save you a lot of time and trouble during the long and complicated short sales process, taking all these things off your hands, and lessening the stress.

Experienced short sale agents also know how to handle obstacles that you may encounter during the short sale process and can manage expectations of all the parties involved.

It takes skill and a lot of experience to be able to do all of this and successfully complete a short sale, make sure you choose the best Naperville short sale agent to represent you.

If you are ready to do a Naperville short sale call me, Teresa Ryan, a certified short sale agent at 630-276-7575.  As Broker/Owner of Ryan Hill Realty - www.RyanHillRealty.com, I have the qualifications, experience and tools to help you sell your Naperville short sale home.

Teresa Ryan

Broker/Owner, CDPE

Ryan Hill Realty

1288 Rickert Dr Suite 300, Naperville, IL 60540

630-276-7575

TRyan@RyanHillRealty.com