Keys to a Successful Short Sale in Fort Collins, Colorado

To be successful in a short sale in Fort Collins and the Northern Colorado area, you must really do your homework up front to give yourself the best opportunity to receive an offer and to have the bank accept the offer.

Here are my 5 keys for you to have a successful Short Sale:

1) Use a Competent Realtor                                                                                                

The first key to a successful Short Sale involves the use of a Realtor.  A Realtor will guide you through the process of actually listing and selling your property together with negotiating with the foreclosing lender to accept a purchase contract for fair market value of the property.  In the Short Sale process, the Realtor’s commission is paid as an expense of sale by the lender.

2) Convincing the Lender of Fair Market Value

The lender must be convinced that it will be receiving the current value of its collateral without the additional time and expense of the foreclosure process.  A Realtor is the best choice for establishing the fair market value and sales price of your home.

3) Convincing the Lender of Financial Hardship

A Short Sale also requires establishing that the property owner has little or no cash flow or assets and that a long term financial hardship or insolvency exists.  A Realtor can assist you in completing a Financial Statement supported by income tax returns, pay stubs, and bank statements.

4) Negotiating with Junior Lien Holders

Junior lien holders must be convinced to voluntarily release their liens on the property to allow the Short Sale to be completed.  A Realtor will negotiate any necessary financial arrangement with the junior lien holder and will work with the title company to prepare the documentation necessary to remove the lien from the property.

5) Convincing the Lender to Approve the Short Sale

The lender must agree that the proceeds of the Short Sale as shown on the HUD-1 settlement statement is as much or more than will be realized through the Foreclosure process.  Your realtor will obtain the written approval from the lender.

 These are my keys to help you be successful with your Short Sale.  If you happen to live in the Fort Collins or surrounding areas of Northern Colorado including Larimer and Weld Counties then email me your questions: Mike@MikeMalvey.com or visit my website: www.SearchFortCollinsMLS.com.