Susie Genet 3912 E 91st St Tulsa, OK 74137 Mobile: 918-809-8296 Email Susie

Short Sales: Selling and Buying

Susie Genet, Chinowth & Cohen Realtors

Call or Text: (918) 809-8296


Interested in purchasing foreclosed properties in the Tulsa area?  Please fill out the following information to receive lists of foreclosed, REO or HUD properties in the price range and areas you are interested in:  FORECLOSURE LISTS

REO: REO properties (short for Real Estate Owneed) are properties that have gone back to the mortgage company after an unsuccessful auction or because the seller has signed a deed in lieu of foreclosure.

Foreclosure: Foreclosure sales occur at the courthouse as part of a Sheriff's auction of the property after it has been through the foreclosure process.

HUD Homes:  A HUD home is a residential property (1-4 units) that has been acquired by HUD following a foreclosure on an FHA-insured mortgage. 


If you are long on time and patience and are hoping to get a good deal on your home purchase, the short sale market may be right for you.  A short sale is when the mortgage holder is accepting less than full payoff of their mortgage in exchange for releasing the lien.  By purchasing a short sale, you may also be helping keep a troubled homeowner from facing foreclosure.  There are some things to consider before entering this market:

Know your market:  Not every short sale listing is a good deal.  Some properties have been so overmortgaged that even at a lower price than what is owed on it, it is still overpriced.  It is important to know the values in the area and the condition of the property.

Work with an experienced real estate agent:  There are a lot of potential issues in trying to purchase a short sale and an experienced agent can help you navigate them.  It is important to know how along in the foreclosure process the property is and whether or not there are additional liens or encumbrances on the property that might prevent the sale.

Be prepared to be patient:  The banks have been working to streamline their short sale processes, but it may take 3-6 months (or longer) to successfully purhase a short sale, and some of them may go back to the bank or go to sheriff's sale before approval can be reached.


If you own a home and are falling behind in your payments, you may want to consider a short sale. A short sale is when a property is sold for less than what is owed on the mortgage and the lender accepts the lower amount as satisfaction of the mortgage.

How do short sales work?

In real estate, a short sale is when the proceeds of the sale are less than the full amount that is owed to the bank or mortgage company.  The lender agrees to discount the loan balance.  In the long run, it is often easier for the bank to accept this lower amount than to go through foreclosure proceedings.  Not all lenders will accept short sales and not all properties are eligible, but more often than not the lenders are willing to consider it.

Foreclosure is a process that can take substantial time.  During the foreclosure process, it is still possible to sell the property on a short sale.  Communication with the lender is key to this process.  A real estate agent experienced in working with short sales will be able to negotiate with the lender on your behalf.



What is the process?                                  Tulsa real estate

Getting the house on the market is the number one priority!  An experienced agent will help set the price at market value.  The agent will need an authorization letter from the seller giving the lender permission to release information.  Once an offer is received on the property, then the agent can begin negotiations with the lender's loss mitigation department.  The seller will be required to prepare a hardship letter and fill out a financial disclosure packet.

When considering a short sale of your property, there may be tax and/or legal ramifications.   The IRS may consider the debt forgiveness as income.  The Mortgage Forgiveness Debt Relief Act of 2007 allows relief in certain conditions.  The lender may be able to pursue a deficiency judgment for the difference between the amount owed and paid.  An attorney and a CPA will be able to advise on these situations.

If you have questions or are considering a short sale for your property, please contact me at or call 918-809-8296.

Tulsa real estate

What is HAFA?

The HAFA program took effect on April 5 2010 and is to provide an option for homeowners who have not been able to keep their homes through HAMP (Homes Affordable Modification Program).  Click on the following link for more information:  HAFA

Benefits of a Short Sale

Benefits to the seller include:

1.     A short sale may not impact their credit score as much as a foreclosure.

2.    Seller can continue to live in the home during the process

3.    Morally, sellers are not walking away from a debt but attempting to pay off as much as possible

4.    Realtor fees and closing fees are deducted from the payoff to the bank, seller does not incur these costs.

Benefits to the Lender include:

1.     Lender may not have to go through a costly foreclosure process.

2.    Lender does not have to incur the cost for listing and marketing the property.

3.    Lender is able to remove a loan that is behind from their portfolio

Short Sale Links

The following are links to some additional information on short sales:

Short sale specialist network:

How to do a short sale  Why would a lender accept a short sale?  
by Elizabeth Weintraub, guide

Short Sell Your House - 7 Steps That Helped Avoid Foreclosure

Posted by debt kid on the July 2nd, 2007

Who Profits From Short Sales
Spreading Around Short Sale Profits
Elizabeth Weintraub,

Field Guide to Short Sales

Short Sales vs Foreclosures - The Real Deal
Kendra Barnett, AOL Real Estate contributor

Government Announces New Short Sale Guidelines
Source: Associated Press, J.W. Elphinstone (11/01/2009) and The Wall Street Journal, Ruth Simon (11/01/2009)