If you are facing foreclosure please read this very carefully. A short sale is a legally-binding agreement that allows the home to be sold for less than the remaining balance of the loan. A lot of home owners are asking questions about short sales, foreclosures, pre-foreclosures, REO’s and repos. Even though there are a lot more foreclosures in the other states we still have big problems here in Idaho. Lenders may be more open to accepting the terms of a short sale in this market, more than before, to avoid the much more costly foreclosure process.
What to do first:
· The Sellers and Idaho Real Estate Agent need to have an extensive truthful meeting about the Sellers financial status. If the sellers are having financial problems, they may not want to discuss the details of their financial situation, but being up front and honest, and disclosing everything is essential in the closing of a short sale transaction.
· Then the Sellers should contact the Lender to find out whether the Lender is willing to consider a short sale arrangement. Convincing a Lender to reduce the balance of the loan to close the transaction is often challenging, this is where the negotiating skills of a seasoned Idaho agent is imperative. Remember the additional work that short sales require of both the Seller and the Idaho agent.
· The Escrow Officer will need to prepare a "net sheet" as soon as possible and update it often as possible. This is a detailed statement of the payoffs and closing costs that will be charged to the Seller at close of escrow.
For the lender:
· Copy of the Purchase Agreement
· Financial hardship letter for the Lender
· Pay stubs and proof of all income.
· 2 years income Tax
· Returns Current tax bill
· Personal checking account statement
· All past due secured and unsecured debts
· Latest mortgage statement
· Current appraisal and comparable sales in the area
Find out the value of your property. Your Idaho realtor will provide you with an estimated market analysis.
Title Company:
The conditions of the short sale closing must be set out in both the Purchase Agreement and Escrow Instructions. The Lender's payoff demand is received in escrow and includes restrictions on closing costs and the payoff amounts to all lenders and creditors. The Sellers and Idaho real estate agent should be proactive about the numbers that the lender will see. Include every possible expense in the Sellers "net sheet", and pay close attention to the "bottom line" as the process unfolds. Your Escrow Officer should advise you immediately of any changes or discrepancies. The Lender will provide a minimum payoff figure which it is prepared to accept, and its willingness to continue negotiating.
Your Escrow Officer will report all the numbers and complying with the short sale Lender's requirements. Work with your Escrow Officer to 
generate the "net sheets" for the Lender, the Escrow Officer will anticipate the requirements to monitor and close these unique transactions.
Finally:
So if you are facing a possible foreclosure situation please contact me and I will work hard for you negotiating a possible short sale with your lender.