Boulder Short Sales: Selling Your Home For Less Than You Owe

What is a short sale?  They should probably be called "long sales", but by definition a short sale is one where the lender(s) agree to accept less than what the borrower/seller owes on the property and allow it to be sold.  These can be time-consuming and complicated transactions, and there are limitations.  Even more than a regular real estate transaction, short sales are like puzzles with a lot of moving parts, and we offer experience and solutions!

Browse the Colorado Foreslosure Hotline or simply call 877-601-HOPE for more general information on the foreclosure process.  There are other possible options like loan assumptions, a deed-in-lieu of foreclosure (DIL), or deed-for-lease.  Watch a video with more information at the bottom of this page, or visit FNMA's foreclosure information website using this link.

If you're buying a Boulder home, short sales present some unique challenges.  Historically, many buyers have simply stayed away from short sales because of the time and uncertainty involved in the process.  Unlike "traditional" sales where the buyer and seller agree on terms and conditions and work toward closing, a short sale involves the additional layer of lender approval once the parties agree.  Getting short-sale approval has typically been a bottle-neck in the process, sometimes taking months just to get a response from the lender(s) involved.

If you are interested in buying a Boulder short sale, read more and use our new tool for searching Boulder MLS short sale listings.  You'll need to be sure your mortgage loan is pre-approved and you may need to plan for timing contingencies.  Contact us, we'll review your situation and develop a plan.

There are some new guidelines put in place by the U.S. Treasury called the Home Affordable Foreclosure Alternatives, or HAFA that should, and we all hope will result in solving many of the historical obstacles to closing short sales.  These new guidelines give lenders and sellers financial incentives to streamline the process, and also provide loan servicers with new authority to make decisions quickly.  You can read more about HAFA using this link.

If you are selling a Boulder home, there are a numer of things you should know about short sales.  For one, just because you owe more than the home is worth doesn't necessarily mean a short sale is possible.  Before we undertake listing a short sale, we will need to review your situation and ask some important questions.  Prior to our meeting, if you could put together your loan information, i.e. your lender's contact information (all outstanding loans), loan balance(s), last payment date(s), any notices and/or letters you've received, loan number(s), etc., that's a good start.  We'll review this with you and help you develop a plan.

Also, be prepared to submit full financial disclosure to the lender, such as:

• Financial Analysis Form (Income and Expense Analysis)
• Hardship Letter
• All Recent Bank Statements
• All Recent Pay Stubs
• At Least the Prior Year's Tax Return

Short sales are not easy and they can be frustrating, but there can be some real advantages to everyone involved.  If you would like more information about buying or selling short sales, simply contact us or fill out and submit the following form (short sale video below):