Ed's Chesprocott Region Blog: A Short Sale Success Story in Watertown CT

A Short Sale Success Story in Watertown CT

A Short Sale Success Story in Watertown CT

There are still many people in Connecticut that are struggling with paying their mortgage. Unlike the rest of the country, many Central Connecticut home owners are underwater. 

Bad things happen to good people. In Watertown CT home values have not yet recovered to allow people to get out from under the burden of their homes.  Home values have fallen back,  and in many areas have reached a stable range. The market is, however, affected by home owners that have just walked away and allowed the home to go into foreclosure, or have made an active choice to get their home sold by means of a short sale.

A Short Sale Success Story in Watertown CT

Such was the case for the family of this home in Watertown CT.  They had a justifiable reason for not paying their mortgage and reached out for help. After a consultation, and all the documentation needed for their lender was prepared, their house was placed on the market.

Like any other single family home, the house had to be placed into the market within fair market value for its condition. We received an acceptable offer within 2 weeks of being on the market.

The short sale documentation was sent forward to their servicing agency on January 13, and as the mortgage was owned by Fannie Mae, it as loaded into their system as well. Allowing for their time to review, the lender sent out their appraisers to verify the value of the home. As a result of a properly prepared short sale package, the lender approved the short sale with an acceptance letter on February 10, with full waiver of deficiency.

The timeline for this family: Consultation early December House placed on market Dec 19, 2016 Acceptable contract for the home received and executed Dec 30, 2016 Documentation package sent to bank Jan 13, 2017 Appraisal performed for bank on Feb 4, 2017 Settlement Agreement received Feb 10, 2017 Closing to be completed no later than April 5, 2017

 A Short Sale Success Story in Watertown CT

When all options for relief of the mortgage burden have been exhausted it is possible to attempt to sell the house as a short sale and resolve the mortgage differential with the bank with their cooperation.

First, the definition of a short sale is when the bank agrees to accept less than the value of the outstanding mortgage on the home as payment for the note. This is accomplished by first staying in contact with the bank, and by finding an experienced short sale real estate agent that understands the process, and has successfully taken homes to completion of the process. The short sale process is getting to be so common, that many banks will suggest area real estate agents that they trust to get the job done.

The banks and the agent will need to thoroughly discuss the requirements with the home owner, always maintaining professionalism and confidentiality. Not everyone may qualify, as there are specific hardships that the banks would recognize and allow as cause for a short sale.

These hardships are as follows:

  • Unemployment: No job no revenue stream to pay the bills Reduced Income: If both incomes were required to make the purchase and one person lost their job or had their job downsized, the balance has been disrupted.

  • Divorce: If they can’t live together they certainly can’t maintain the home together.

  • Separation: Similar to divorce, but a legal separation would be needed as evidence

  • Medical Bills: Medical costs can be staggering and easily pull a family’s finances down.

  • Too Much Debt: Credit cards and time payments can also get out of hand.

  • Death of a Spouse or Family Member

  • Payment Increase: This can be caused by an adjustment common with adjustable rate mortgages, or over time with escrow tax increases if a municipality or county has fallen on hard times.

  • Business Failure

  • Job Relocation: Even if the income is sufficient, you can’t be expected to maintain 2 residences.

  • Illness

  • Military Service

  • Incarceration

A combination of either of these issues which individually may not create a hardship, but together creates a burden that causes the home owner to fall behind on their payments.

Banks do not want to be in the real estate business as every home that sits in their inventory as a non performing asset takes away working resources that they can be using to help other people.

Even with the banks on board with a short sale, there may still be those persistent phone calls and communications from the loan servicing departments of banks, as often within a bank, one department doesn’t understand what another department maybe doing on the same issue.

Short sales are not simple, but they can be productive and when the agent handling the short sale understands the process, they do work. When the system flows properly, the time to close on a short sale can typically be similar to that for a conventional sale, with the new buyer getting a deal on a home and not having to deal with the issues created by a vacant foreclosure.

Short sales do work. If you are trying to avoid foreclosure in Central Connecticut and are in danger of losing your home, we can help. Call my cell at 203-206-0754 or email me for an appointment to sit down and discuss your problem.

 

A Short Sale Success Story in Watertown CT

 

 

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Whether looking to buy or sell, we service the Greater Waterbury towns of Beacon Falls, Bethany, Cheshire, Naugatuck, Middlebury, Southington, Thomaston, Waterbury, Watertown and Wolcott 

Ed Silva  RE/MAX Professionals,  www.edwardsilva.com  203-206-0754

Comment balloon 17 commentsEd Silva • February 11 2017 01:29PM

Comments

Good morning Ed Silva ,

You are right bad things can happen to good people. In some of our forecast I've been attending they have said we are in such a good place because there are as high as 44% of areas that have still not recovered from the recession. Congratulations on helping a family through the short sale process.... they are not simple and takes an agent who knows hot to navigate the waters.

Posted by Dorie Dillard, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.346.1799) 7 months ago

Hi Ed Silva 

Sorry to hear Waterbury has not recovered and I am glad to see a short sale that took a short time to get to closing. I like the list of hardships that will be considered

 

Posted by Doug Dawes, Your Personal Realtor® (Keller Williams Realty - Topsfield, MA) 7 months ago

Good morning, Ed Silva it's been a very long time since we've seen a short sale in our area....we did very few previously, and now none....and for that, I'm thankful.... those in your area who fall into this category would be wise to contact Ed Silva for guidance.... he has a firm handle on how to proceed with this type of transaction....

Posted by Barbara Todaro, "Franklin MA Homes" (RE/MAX Executive Realty ) 7 months ago

Ed,

 Good post I did not realize some of the hardships good information for us all! Have a good weekend!

Posted by Yolanda Cordova-Gilbert, C&G Real Estate Consulting (C&G Consulting) 7 months ago

Hi Ed- When our area first started seeing short sales many agents wouldn't touch them or had little to no experience with them.  Every homeowner needs someone who has good short sale experience to help them through this. 

Posted by Kathy Streib, Home Stager - Palm Beach County,FL -561-914-6224 (Room Service Home Staging) 7 months ago

Good Afternoon Ed - This is the preferable way to go.  Find the right real estate agent for sure.  People in central Connecticut should call you.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 7 months ago

Ed, Those are some good numbers from start to closing.  It seems that it does take less time to get approval on some short sales. Congratulations on a job well done.  May the sellers find relief in knowing that challenge will soon be behind them.

Posted by Kathleen Daniels, San Jose Homes for Sale - Probate Broker (KD Realty - 408.972.1822) 7 months ago

Ed Silva  it is important to have an agent like you who knows how to handle a Short Sale .Congrats on another successful transaction

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) 7 months ago

Good morning Ed.  That is one very impressive short sale with the offer and approval coming so quickly.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) 7 months ago

Great article Ed.

Here in NJ we are going through the same thing. There are so many people out there that are in need of professional help when it comes to doing short sales and very few agents take the required time to educate themselves on becoming an expert in this field. Keep helping those in need!

Posted by Damon Redmond, Real Estate Professional (DamonHelps.com) 7 months ago

Ed, congratulations on such success so far, and hope your closing is very smooth.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) 7 months ago

It is nice that it is working out for that family. I am seeing a steady flow of short sales here too, all though dont work out as many people choose agents who have never listed a short sale and are doomed before they start. Have a good Sunday Ed Silva 

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) 7 months ago

You are the Wizard of short sale in your CT market place. Incarceration can really be a show stopper in the home payment monthly routine and that impacts the cash flow like a tourniquet Ed Silva !

Posted by Andrew Mooers, Northern Maine Real Estate-Aroostook County Broker (MOOERS REALTY) 7 months ago

This is so cool Ed, good for you! I know how hard you work and how dedicated you are to our profession.

Posted by Noah Seidenberg, Chicagoland and Suburbs (800) 858-7917 (Coldwell Banker) 7 months ago

Short sales will always be a part of the real estate landscape to one degree or another and Sellers in your area are wise to consult someone with experience in this niche...it isn't for everyone and not just anyone should list them. Thank you for your service in this valued area for Connecticut residents.

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce - Short Sale (Keller Williams 414-525-0563) 7 months ago

Hi Ed... I'm about to list a short sale and it's always a bit sad when one has to do so. But for my client, this is the best solution right now.

Posted by Nina Hollander, Your Charlotte/Waxhaw/Fort Mill Area Realtor (RE/MAX Executive | Charlotte, NC) 7 months ago

Sounds like these people were in good hands Ed, good that you could help them through this.

Posted by Bob Crane, Forestland Experts! 715-204-9671 (Woodland Management Service / Woodland Real Estate, Keller Williams fox cities) 7 months ago

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