A short sale can be time consuming and complex

A short sale is the selling of property to avoid foreclosure, the catch being that the property is being sold for less than the amount owed on it.  Short sales are becoming more and more popular in the St. Louis, MO, real estate market. What makes a short sale tricky is that the sale price is not up to the seller, the lender has to agree to the purchase price.  The home owner isn’t walking away with any money at closing in the case of a short sale so he doesn’t care if the home sells for a dollar, the bank’s involvement is to reduce their loss as much as possible and the buyer just wants a bargain.

The basic process of a short sale is:

• Borrower must be in arrears on loan payments
• Borrower or broker contacts lender to discuss the possibility of a short sale
• Potential buyer makes offer, knowing what is owed by borrower/owner of property
• Lender reviews loan and offer
• Borrower has to show/prove financial hardship
• Lender and broker discuss value and condition of property and examine any offers
• Lender makes final call

The short sale process looks easy on paper, follow the steps and the deal is done, short sale completed.  However, in reality the communication between the borrower, lender, Realtor and potential buyer is complex and time consuming.  Simply wanting a short sale won’t make it happen.  Using a CDPE (Certified Distressed Property Expert) eases the pain and insures you better success when trying to complete a short sale.  There are few CDPEs in St. Louis county.  Nolting Real Estate has 2 on staff.  Being in financial stress is not easy on anyone and using an expert will help you get the job accomplished in a more timely manner and help create a successful real estate transaction.

If you’d like more assistance, please call me at 314-267-2636.  And if you’re searching for a home, please check my St. Louis Real Estate Listings resource.

Note Well:This St. Louis home is a short sale — We are Certified Distressed Property Experts.  We help people with distressed properties.

Super opportunity for the handyman! Located at the back of a peaceful cul-de-sac, this spacious all brick 4 bed/3 bath ranch residence has everything you’ve been searching for. The living room & dining room share a tall cathedral ceiling lending a huge space to welcome & entertain your guests. The family room has a full masonry fireplace & sliding glass doors to the private aggregate patio. You’ll be very impressed with the extra-large kitchen & breakfast room. The master suite includes a second set of sliding glass doors to the back patio, a full bath with whirlpool tub & His&Hers closets. The functional space is tremendously expanded with the huge lower level. There is a large recreation room with brick fireplace & built-in brick bar, plus 2 additional rooms & the third bathroom. The privacy… fenced backyard features a large aggregate patio surrounding an in-ground pool. Don’t miss out on this one. $203,000.

This is not listed by Nolting Real Estate.  We include it here because it is a good buy in a subdivision that we love — Westbury Manor.  We’ve sold a number of homes in Westbury Manor in the last year.  Properly remodeled, this home should command about $300,000.  It’s a good investment.  Call us to schedule a tour of 162 Saddleford — 314.267.2636.

Search for other short sales at our St. Louis MLS search website.

1. Short sales are impossible and never get approved. It is true that short sales are more difficult but they are not impossible. A Certified Distressed Property Expert has extensive training to help homeowners in distress.
2. Banks Don’t Accept Short Sales. In reality, banks are doing whatever they can to avoid a foreclosure.
3. You must be behind on your mortgage to negotiate a short sale. Many lenders today focus on verifiable hardship, monthly cash flow shortfall and insolvency - not just people in default.
4. Buyers Avoid Short Sales. Many agents report that buyers call them looking for short sales. Short sales are becoming synonymous with a “good deal”, specifically with international buyers.
5. Listing your home as a short sale is embarrassing. Recent estimates state that 1 out of 5 homeowners in the U.S. is in this situation. You are not alone!
6. Banks prefer to foreclose. Banks do NOT want to foreclose. Banks, investors and the federal government have all publicly stated that if a person qualifies for a short sale, then the deal needs to be considered.
7. There is not enough time to negotiate a short sale before my foreclosure. Many lenders today will stall a foreclosure up to the final day of the process, with a legitimate contract.

Nolting Real Estate broker, Russell Nolting, is a Certified Distressed Property Expert® (CDPE). One of only a handful of Realtors in St Louis with this designation, a CDPE is a real estate professional with specific understanding of the complex issues now confronting the real estate industry.  Through comprehensive training and experience, we are able to provide solutions for homeowners facing hardships in today’s real estate market.

The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. I believe that in almost all cases, the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional who has the CDPE designation. We have the tools needed to help homeowners find the best solution for their situation.

While enduring financial difficulties is challenging for any family, the process of finding a qualified real estate professional should not be.  If you would like to discuss your situation, please call Russell at 314 267 2636.  Consultations are free of charge and your privacy will be protected.

1. Short sales are impossible and never get approved. It is true that short sales are more difficult but they are not impossible. A Certified Distressed Property Expert has extensive training to help homeowners in distress.
2. Banks Don’t Accept Short Sales. In reality, banks are doing whatever they can to avoid a foreclosure.
3. You must be behind on your mortgage to negotiate a short sale. Many lenders today focus on verifiable hardship, monthly cash flow shortfall and insolvency - not just people in default.
4. Buyers Avoid Short Sales. Many agents report that buyers call them looking for short sales. Short sales are becoming synonymous with a “good deal”, specifically with international buyers.
5. Listing your home as a short sale is embarrassing. Recent estimates state that 1 out of 5 homeowners in the U.S. is in this situation. You are not alone!
6. Banks prefer to foreclose. Banks do NOT want to foreclose. Banks, investors and the federal government have all publicly stated that if a person qualifies for a short sale, then the deal needs to be considered.
7. There is not enough time to negotiate a short sale before my foreclosure. Many lenders today will stall a foreclosure up to the final day of the process, with a legitimate contract.

• Financial Hardship:  This is defined as a verifiable reason that has or will cause you to miss a payment. Examples that qualify are mortgage payment adjustment, a job loss, too much debt or a business failure.
• Monthly Shortfall: Lenders want to see that you cannot afford to pay your mortgage. You will be required to provide your agent a financial worksheet that demonstrates this. The shortfall equation is simple. Total Monthly Income - Total Monthly Expense = Monthly Shortfall.
• Insolvency: You must be able to prove to the lender that you owe more than you have in cash. Insolvency can be proven in many cases, even though you may still have some money for living expenses.

I can help.  I’ve developed an association with the Destressed Property Institute.  This group trains Realtors to become Certified Distressed Property Experts.  Certified Distressed Property Experts can help consumers negotiate a short sale.  

But the fact is that other options besides short sale and foreclosure might be more beneficial to the distressed homeowner.  The federal government has launched a new website with online tools that will allow a homeowner to determine if they are eligible to participate in the “Making Home Affordable” loan modification and refinancing program.

I can help you weed through this mess.  You will need to have the following documents together:

*  Information about your first mortgage, such as your monthly mortgage statement.
* Information about any second mortgage or home equity line of credit on the house.
* Account balances and minimum monthly payments due on all of your credit cards.
* Account balances and monthly payments on all your other debts such as student loans and car loans.
* Your most recent income tax return.
* Information about your savings and other assets
* Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
* It may also be helpful to have:  A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.) if applicable.

Give me a call at 314-267-2636, or check out my St. Louis Home Guide website.

• In this type of transaction there is an additional party involved besides the buyer and the seller; the bank. The bank must approve the sale, and this can make the time to close much longer than usual. Expect it to take anywhere from four to six weeks. And once the bank’s approval is granted, they will expect you to be ready to close as soon as possible.
• You will need to pay for your own inspection, and since the sale is “as-is”, this means that no repairs will be done and there will be no closing cost credits for repairs.  Our favorite St. Louis home inspectors
• You will also need to pay for your own appraisal. The bank will do their own as well, and have been known to reject the sale based on their appraisal. Also, they may ask the buyer to raise their offer before approving the sale.
• These things are obvious risks to the potential buyer, as you could end up out of your inspection costs.
• Deferred maintenance on the home is a potential risk for the buyer. Consider that since the mortgage payments were not being made, it’s highly likely that the homeowner was not able to afford regular home maintenance.