shortsales

A short sale is the process by which homeowners can sell their home for less money than
they actually owe on the mortgage(s). This is accomplished by providing proper
documentation to the lender(s) to convince them to reduce the mortgage balance to allow
the sale. If the sale is approved, the mortgage lender(s) will actually take a loss on the
mortgage.

If a bank approves the discount of a mortgage, the home can be sold for a price lower
than the amount owed without the seller having to come up with cash to cover the
shortfall. The mortgage is satisfied and any foreclosure process stops (in most cases).
There are cases where the mortgage company may require a promissory note to be
signed by the seller or a cash contribution is required at closing from the seller. It is based
on a case-by-case basis and until the home is listed with a broker and an offer is
received, there is no way to know 100% what will be required from the seller.

1. List your home with us (an Exclusive Sellers Listing Agreement)
2. Request a short sale package from your mortgage company(s)
3. Inquire with your mortgage company if you are eligible for the
HAFA program (see details below).
4. Begin preparing a hardship Letter with supporting documents
such as unemployment letters, layoff notifications, etc.
5. Monthly expense list – Budget
6. Pay Stubs and other income documentation
7. IRA / 401 K Statements and other assets
8. Last 2 months of bank statements – all pages
9. Tax Returns, all Schedules, W2’s, 1099's, etc.

*The Byrdsong Team will assist you with your questions and help
how ever we can in making this process as smooth as possible.
Gather the documents and we will facilitate the short sale and
submit the requested package and HUD-1 to your mortgage
company.

Waiting too late to contact us: Please do not wait until the month before foreclosure or the
month of foreclosure! Do NOT wait until you receive that certified letter from the foreclosure
attorney with the foreclosure sale date. Often it is too late to do anything! As soon as you are
late, or feel you are going to be late on your mortgage; call us and we can consult with you on
your options!
Moving out of the home: Some mortgage companies consider this 'abandonment' and may
deny your short sale and proceed with the foreclosure. STAY IN YOUR HOME, YOU STILL ARE
THE OWNER AND HAVE RIGHTS, even if you are delinquent! You remaining in the home also
prevents vandalism and other issues such as winter-time pipe bursts due to the utilities being
disconnected.
Signing over your deed: NEVER sign over your deed to ANYONE. There are people and
'companies' that prey on homeowners in a financial hardship. They know you are stressed and
will do anything to prevent a foreclosure! But just because you sign over your deed or title to
your home does NOT release you from the financial responsibility of the mortgage! So do NOT
give your house away by signing it over thinking this will help you! Call us!! 404.843.2500
Modification vs. Short Sale: If you begin the short sale process with your Realtor you cannot
also try to modify the loan. We suggest you attempt a loan modification first and if you are
denied, then pursue a short sale. Modification implies to your lender you want to KEEP your
home and the short sale indicates you want to SELL your home. It sends mixed signals when
you try to do both and makes our job virtually impossible.
Unpaid liens and judgements: In Georgia, as the seller you must convey clear title to the new
buyer before you can close on your home! The Byrdsong team will pull your tax records and
view the Georgia Superior Courts website and search for liens, but we do not always catch
everything here. Once we have an offer on your home after its listed, the closing attorney will
formally pull title. We have seen issues such as unpaid income taxes, oustanding homeowners
association fees, oustanding utility bills, credit card debts and judgements or mechanical liens
show up on title. Often homeowners are unaware of these liens and they MUST be cleared up
before closing.
Filing Bankruptcy: This may be something you are considering. You should inform your agent
ahead of time. If you file bankruptcy during a short sale your home cannot be sold. Your home
in most cases will then be protected under the bankruptcy court and it cannot be sold until you
are discharged. Therefore, if you have a buyer ready to purchase your home, the closing will
have to be cancelled and this will cause major delays. Explore these options before you list
your home as a short sale.
Not allowing Realtors and their buyers into the home: No access into your home equates to no
offers which leads to a definite foreclosure! You must always cooperate with your listing agent
and the buyers agent. This also means allowing a lockbox on the home.
Lack of bank requested documents: If the bank asks for it, they need it! If we do not provide the
requested documents in a timely fashion, the bank mitigator assigned to your short sale file
may close your file and make us start all over after months of hard work! So cooperate with
your agent and the bank and provide the requested documents and signatures in a timely
fashion.