Step One – Educate Your Self
The decision to short sale your Central Valley home should not be taken lightly. Your decision may impact your financial future. It is important that you take the time to educate yourself. Pat Holkesvig is an experienced short sale real estate specialist. She highly recommends you discuss the tax and legal implications of a short sale with a CPA and real estate attorney.
Step Two – Choosing an Agent
Choosing the right agent to list your short sale is the most important decision you will make. Your choice may be the difference between a successful sale and foreclosure. The real estate professional you choose should be well-versed in the short sale process and have a proven record of success. Pat Holkesvig is a top producing short sale agent. Pat listed and sold more short sales in the last year than any other area agent. She has a degree in finance and previously arranged commercial lines of credits for technology companies while working for IBM, ITT and Transamerica. Unlike most agents, Pat understands the mindset of large financial corporation and is able to effectively negotiate with them.
Step Three – Completing the Short Sale Packet
Pat has a standard seller short sale packet that most banks accept. Included in the packet are the following:
Authorization to Release Information – Required for her to act as an intermediary to negotiate with lenders and/or lien holders on your behalf. An authorization is required for each loan.
Detailed Financial Hardship Letter – The goal of this letter is to simply explain your situation to the bank. This will include information and time lines for financial hardships including job loss, medical issues, divorce, etc. If you are considering bankruptcy, please indicate so and the current status.
Detailed Financial Statement – The bank wants to know what your income and expenditures are each month as well as any other expenses and assets you have.
Supporting Financial Information – The banks generally require:
• 2 years W2’s and Federal Tax Returns
• 2 months pay stubs
• 2 months bank statements
Supporting Hardship Information – This is any additional documents showing the hardship(s). This can include delinquency notices, tax or IRS liens, medical bills, layoff notice, etc.
Mortgage Statement – The banks require a copy of the most recent mortgage statement for each loan.
Step Four – Listing Your Home
Pat will recommend a list price to you. Typically a short sale is listed at market value. Pricing a home is an art and not a science. The list price must be low enough to attract a buyer but not so low that the bank will not take the offer seriously. The listing agreement includes a short sale listing addendum. Pat does not charge sellers for her services. She is paid when the transaction closes out of the proceeds of the sale. The bank approves and pays all commissions.
Step Five – Marketing Your Home
Pat has a marketing plan unsurpassed by any agent in the Central Valley. Her plan includes an online and offline strategy. Pat believes in harnessing the power of the internet to find buyers for her listings. She manages a database of 40,000+ buyers and sellers. Chances are she is already working with a potential buyer!
Step Six – Evaluating Offers
The number of offer submitted to your bank will depend on the bank’s policy. Many banks prefer only to deal with the highest and best offer. Pat is experienced at determining which offer has the greatest chance of being accepted by the bank. She also understands how to structure a transaction to protect you from out-of-pocket seller paid expenses.
Step Seven – Submitting the Short Sale Packet to the Bank
The offer will be bundled with the listing agreement and short sell packet. The packet will then be submitted to the bank. The packet is typically faxed, e-mailed or uploaded in a PDF format to the bank. Many banks are transitioning to online portals to ensure all documents are received and are readily accessible. Pat Holkesvig is a certified short sale specialist and is a member of all the larger online portals including the Equator and RESNET.
Step Eight – The Negotiation and Follow-up
Step Nine – The Approval and Escrow
Step Ten – Prepare Emotionally to Move
If you are already in default, or have a foreclosure pending, the whole scenario and process of trying to short sell your home can be very emotionally draining. You will receive solicitations from everyone and their mother. You may have people stop by your home while you are still there. It can be a very difficult process.
You are being proactive in seeking a short sale of your home. You are taking the right steps, and in time, everything will work out. I can’t promise it will be easy, but you will make it!
Call Pat Holkesvig at (209) 471-6516 or complete our Contact Us form for additional information.