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Top 6 Colorado Springs Short Sale Questions Answered
Top 6 Colorado Springs Short Sale Questions Answered
Are you considering selling your home by means of a short sale, but have lots of questions? If so, read on ……
Interested in selling your house as a short-sale? Email Kathy Torline KTorline@msn.com or call 719-287-1049
(1) I want to do a short sale and have a 2nd mortgage, does this make me ineligible? 
(2) Do I have to miss a payment to do a Short Sale?
No, not necessarily. Some lenders will accept short sale offers from sellers who have never missed a payment. But most lenders don’t seem to pay much attention to a seller and a request for a short sale when a payment has not been missed.
(3) How does a listing agent get paid a commission?
The bank will pay the commission along with all the other usual closing costs. Read the rest of this entry »
Must know facts about buying a Colorado Springs short sale
Colorado Springs Short Sale Buyers need to know facts
Related post: Buying a short sale vs. a foreclosure, what’s the difference? and 5 things to know about buying a short sale
For a FREE List of Foreclosures and Short Sales email Kathy Torline at KTorline@msn.com
Good Deals: YES, this is a good opportunity for the buyers. NO, this is NOT a foreclosure!
Offers for a Short Sales YES, you can make offers on what you think it is fair market price, but NO, you can not 
buy 50 cents on a dollar of what the owner pay for, unless the owner overpaid and/or the market has dropped 50%. Lenders will not approve a short sale below fair market value. Buyers, if you are planning to buy a Short Sale property, please manage your expectation.
Time Frame For a Short Sales: YES, you have to be patient, as part of the process. The Short Sales sellers have to submit a Short Sales Hardship package, and both buyers and sellers will have to wait. NO, you cannot expect bank to get things done faster; they work on their own timetable.
In the case of Short Sales, the Buyer has to wait Read the rest of this entry »
21 reasons short sales fail
Part X of Colorado Springs Short Sales Series
Interested in selling your house as a short-sale? Email Kathy Torline KTorline@msn.com or call 719-287-1049
According to an article in Reuters in April 2008, 1/3 of all short-sale fail. The study was conducted of more than 3,000 real estate agents by Campbell Communications.
Since I do short sales for clients in Colorado Springs and the surrounding areas, I thought I’d make up my own list of why they fail. My logic is that if I can avoid or minimize these issues as much as possible, I should be able to lessen the failure rate. Here’s my list; although I don’t have them ranked in any particular order. Some of these things I can control and some of them I can’t; regardless it was an interesting exercise to put the list together.
A. Training and education (One short sale class is not enough to prepare a realtor to represent a client in short sale.)
(1) Seller’s agents don’t always understand what they are doing
(2) Buyer’s agents don’t always understand what they are doing
B. A buyer is never found for the property
(3) Price is too high
(4) There is too much inventory on the market for buyers to choose from
(5) Undesirable location
(6) Property needs major repairs
(7) Not enough time to market the property before the property goes to foreclosure
C. Offer is too low Read the rest of this entry »
What’s in a short sale package?
One of the most important steps in a successful short sale, is putting together the short sale package which will be submitted to the lender. A complete package can make the difference in how long it takes to get a short sale submitted.
A recent short sale package I submitted to a lender was 76 pages in length.
What should be included in a short sale package?
Interested in selling your house as a short-sale? Email Kathy Torline KTorline@msn.com or call 719-287-1049
Packages can vary lender by lender, but the following is a basic check sheet of what should be included in a 
short sale package. Lenders will tell you to send a complete package.
__ Hardship Letter
This is a letter written by the seller to explain the borrower’s situation and requesting a short sale. It should describe why the borrower cannot make their mortgage payments and their fear of possible foreclosure. It should be a plea for the lender to consider a short sale.
__ Sellers Authorization
This gives the Realtor (or whoever else you designate) authorization to act as your representative in taking to the lender. Colorado has an approved Real Estate document, Seller Authorization Form
___ Paycheck Stubs – Last 2 months Read the rest of this entry »
