Dallas – September 20, 2011 – Short sales of residential properties have the reputation of being long, drawn-out transactions that sap the energy of both the homeowners and their real estate agents. But Oyezz Real Estate, which specializes in short sales, has achieved an industry-leading average of 48 days duration for the typical sale.
Short sales, as an alternative to home foreclosures, are a much more complex transaction, which is why so few real estate agents are comfortable with them. In a short sale, the property is sold for a price below the amount of the loan. The lender agrees to accept the sale proceeds as payment in full, and the homeowner walks away from the home free of debt and free of the “stain” of a foreclosure on their credit report.
Because the property is sold below the amount of the loan, there is extensive negotiation required between agent and lender, and that can stretch out the duration of the sale process. Four to six months is generally considered the standard length of time between an offer on a home and the closing of the deal for a short sale.
But Oyezz Real Estate’s 48-day average – based on sales so far in the third quarter of 2011 – is less than half of the four-month duration that most agents consider the minimum time necessary. Oyezz has been able in just the past year to radically shrink the time needed to close a deal.
In the first half of 2011, Oyezz averaged 54 days from offer to closing on its short sales, and in 2010, its average was 88 days.
“There are a lot of elements involved in a successful short sale,” said John Anderson, President of Oyezz Real Estate. “But the fact that we know exactly what information lenders need in a short sale, and we have streamlined our processes to provide that, is the biggest factor in keeping our sale duration so low.”
Anderson said Oyezz also has refined its communication with lenders, and because of previous successful negotiations, has developed trust relationships with most lenders’ short sale negotiators. In addition, Oyezz has built expertise at initially setting prices for short sale homes that accurately reflect what lenders will accept. That makes it less likely a lender will reject the first offer as too low, since rejections represent a huge slowdown in the sales process.
A major advantage in a short sale as opposed to a foreclosure is that the homeowner can stay in the house until it is sold, just as with any normal home sale. The transaction is recorded on the homeowner’s credit report as a “settled debt,” and once the individual’s finances improve, he or she can consider buying another house within as little as 18 months. Alternatively, a foreclosed homeowner will have to wait seven years to buy another house.
For a lender, the advantage is that even though the proceeds of the home sale don’t fully cover the loan, the lender avoids the legal costs of foreclosure as well as the high costs of having to maintain an empty house until they can sell it, which is much harder when the property is vacant.
Oyezz Real Estate has been handling short sales since before the housing market downturn made such sales more common. The company has a dedicated short sale team, professional trained negotiators, and extensive training in short sales and lender negotiations.
About Oyezz Real Estate
Oyezz Real Estate, based in Frisco, Texas, was founded in 2006 with the mission of helping individuals in the Dallas-Fort Worth area with difficult real estate situations associated with foreclosures, probate, and other challenges. The company specializes in short sales as alternatives to home foreclosure and also aids community improvement through restoring distressed homes. Website: www.oyezz.com.