Kathy A. Torline-Nordstrom
ERA Herman Group Real Estate
Serving Colorado Springs
- Colorado Springs Homes, 4 things to know about a short sale - Part I of Short Sales Series
- Avoid Foreclosure, Know Your Options - Part II of Short Sales Series
- Colorado Springs Home Foreclosures – 11 benefits of a short sale - Part III of Short Sales Series
- The final step in the Colorado Foreclosure process – Part IV of Short Sale Series
How long does it take to do a Short Sale in Colorado?
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As I continue to do more and more short sales; I think one of the most valuable services I can provide it to help educate and counsel potential home sellers who are interested in doing a short sale. Short sales aren’t a perfect solution, but they are an option.
There are many steps involved with the Short Sale process……
(1) The first step is an initial consultation with the homeowner to explain the “in and outs” of a short-sale, previewing the home, driving the neighborhood; completing a comprehensive market analysis on the home.
(2) If the homeowner decides to to a short sale ………….the second step involves preparing the listing paperwork, getting all of the required signatures, entering the information in the multiple listing service. This step is the same for all listings, it just requires a few extra Colorado Real Estate forms and signatures for a Short Sale.
It’s extremely important to price a short sale property correctly. If it’s priced TOO high you won’t get showings and offers; if it is priced TOO low, you’ll get offers but the lender(s) won’t accept the offer.
(One of my pet peeves is showing a short sale property to a potential buyer that is priced TOO low. A buyer is under the misconception that the bank will accept an offer at the listing price. Not true! If a property is priced at 60% of where it should be, chances are good that the bank won’t accept the offer.)
(3) The third step requires working with the homeowner to get all of the required documentation that the lender(s) will require. This paperwork is used for the short sale package; and won’t be submitted until an an acceptable offer has been received.
(4) The fourth step entails aggressively marketing the home for sale and producing a willing, ready, and able buyer. This stage can take as little as a few days or it can take months.
(5) The fifth step is the actual presentation of the offer to your bank. The actual negotiation/approval process can take as little as 2 weeks or as much as 6 to 9 months. On average most Short Sales take between 60-120 days from the date the offer is presented to the lender to the date of the Short Sale approval.
(5.5) If the property has already started the Foreclosure process and if the Notice of Election and Demand has been filed; a Notice of Intent to Cure must be filed with the office of the Public Trustee at least 15 days prior to the foreclosure sale date.
(6) The sixth and last step of the Short Sale process is the period of time between Short Sale approval from the lender(s) and the buyer closing on the home. Many lenders want the the buyers ready to close in as quickly as 3 weeks from the time of Short Sale approval.
(7) Property closes.
The above information is to be used as a general guide and is by no means to be used as legal or tax advice.