BANK SHORT SALES
THE CLARK REALTY GROUP has successully helped dozens of Central Ohio homeowners successfully negotiate BANK SHORT SALES on their properties. It takes specific knowledge and expertise to guide Sellers as well as Buyers through the Bank Short Sale process. We have a system in place that has allowed us to achieve nearly 100% success in obtaining Short Sale Approval on behalf of our clients at NO COST to YOU!
IF YOU FIND THAT YOU NEED OR WANT TO SELL YOUR HOUSE BUT YOU OWE MORE THAN IT'S WORTH OR MORE THAN WE CAN SELL IT FOR IN TODAY'S MARKET, PLEASE CALL....WE WOULD BE HAPPY TO MEET WITH YOU TO DISCUSS YOUR SITUATION AND SEE HOW WE MIGHT BE ABLE TO HELP YOU.
Below is some general information about Short Sales provided by the Columbus Board of Realtors. Please call for more information, we understand your situation and we can help.
Page 1 of 2 CBR 8/08
UNDERSTANDING SHORT SALES
ADOPTED BY THE COLUMBUS BOARD OF REALTORS®
This information is provided by your agent, real estate brokerage and the Columbus Board of
REALTORS® as a helpful informational resource. The following is an explanation regarding some of the
practical and legal issues involved in Short Sales. Buyer and Seller are informed that the short sale
process may have financial, credit or legal consequences and may result in taxable income to or
deficiency owed by the Seller. Buyer and Seller are advised to seek advice from an attorney,
certified public accountant or other expert regarding the potential consequences of a short sale.
Short Sale Defined: The term “Short Sale” is used in the real estate business to describe a situation
where there is more debt owing against a property than the current market value of the property, and
where the seller is unwilling or unable to bring sufficient liquid assets to the closing to cure all
deficiencies. In other words, the Seller can’t sell the property unless the third parties, or “Creditor(s),”
agree to accept a payment that is less or “short” of the amounts actually owed to the Creditor(s). The
Creditor(s) are usually mortgage lenders, mortgage insurers, bankruptcy trustees, and federal, state and
local taxing authorities such as the IRS or State Tax Commission.
No Binding Contract without Creditor(s) Approval: A Short Sale requires the written approval of the
Creditor(s). Consequently, the Seller of the property and any Buyer, are advised that even if they reach
an agreement between themselves for the purchase and sale of the property, that agreement will not be
binding until the Creditor(s) approve the terms of the Short Sale.
Creditor(s) Rejection or Changes to Proposed Short Sale: Based upon the obvious financial loss, the
Creditor(s) may reject a proposed Short Sale. If, however, the Creditor(s) do not reject the proposed
Short Sale, they will usually send to the Seller a list of requested changes to the proposed purchase
contract. Some of those changes will affect the Seller; and others may affect the Buyer. For example,
the Creditor(s) may require that the property be sold in “As-Is” condition. Also the Creditor(s) may not
permit the Seller to pay for any of the Buyer’s closing costs, repairs, etc. The Seller and the Buyer are
not obligated to accept any of the changes requested by the Creditor(s), in which case, there will be no
Short Sale. If, however, the Seller, the Buyer, and the Creditor(s) reach a written agreement with each
other, then, at that point, the Short Sale transaction may proceed to closing.
Delays in Response from the Third Parties: Most purchase contracts for Short Sales impose a
deadline for written approval by the Creditor(s). As a practical matter, the Creditor(s) rarely meet that
deadline.
THE SELLER AND THE BUYER SHOULD BE PREPARED FOR SIGNIFICANT DELAYS IN
RECEIVING ANY RESPONSE FROM THE CREDITOR(S).
Right of Creditor(s) to Encourage Additional Offers: As a condition of considering any proposed
Short Sale, the Creditor(s) may require that the Seller keep the property on the market, even after the
Seller and the Buyer have agreed to the terms of a proposed purchase contract. As a reminder, the
Creditor(s) are being requested to accept payment that is less than what is owed to them. Under those
circumstances the Creditor(s) want to obtain the highest possible price for the property, and, therefore,
may require the Seller to keep the property on the market and promptly submit any additional purchase
offers received.
Page 2 of 2 CBR 8/08
THE SELLER AND THE BUYER SHOULD UNDERSTAND THAT THE CREDITOR(S) MAY NOT EVEN
RESPOND TO A PROPOSED SHORT SALE TRANSACTION UNTIL THEY HAVE HAD AN
OPPORTUNITY TO COMPARE THAT OFFER WITH OTHER PURCHASE OFFERS. THAT PROCESS
MAY ALSO RESULT IN SIGNIFICANT DELAYS FOR ALL PARTIES.
Right of the Buyer to Cancel: As provided above, the Seller may be required by the Creditor(s) to
continue to market the property even after the Seller and the Buyer have entered into a purchase
agreement. Based upon that requirement, the Seller and the Buyer are also advised that until the Seller,
the Buyer, and the Creditor(s) reach a written agreement, the Buyer may cancel the proposed Short Sale
transaction for any reason, or for no reason, by providing written notice to the Seller.
Legal and Tax Advice: A short sale may adversely affect the Seller’s credit rating. Seller is advised to
obtain legal advice regarding the advisability and terms of any short sale agreement with Creditor(s) and
professional tax advice regarding the tax implications of any such sale.
ACKNOWLEDGEMENT OF RECEIPT
The undersigned acknowledge that they have read and understand this document.
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Signature Date Signature Date
