Short sales, start to close
Luxury short sales in Colorado.
Owe more than the home is worth? Sell it with the lender's written approval, privately and on a schedule.
A live person answers. Not a robot, not a phone tree.
Lender approval required
How does a luxury short sale work?
A short sale sells the home for less than the loan balance with the lender's written approval. It needs a hardship letter, the financial package, a signed buyer offer and a negotiator who calls the lender every week.
Hardship.
Job change, divorce, medical cost or a business loss, documented in writing.
The package.
Tax returns, bank statements, pay stubs and the hardship letter.
The offer.
A signed buyer contract goes to every lender on the title.
Approval.
The lender sends a written approval letter. Then you close.
What does a luxury seller need to know?
- Every lien signs off. A first mortgage, a HELOC and any second lien each approve their share.
- Deficiency. Ask the lender to waive the remaining balance in the approval letter, in writing.
- Privacy. We market the home discreetly and show it by appointment.
- Taxes. Forgiven debt has tax consequences. Talk to your CPA before you sign.
What does a buyer need to know?
- Patience. Lender approval takes weeks. Write your offer with that time in mind.
- As-is. The seller has no money for repairs. Inspect everything.
- Proof of funds. Lenders ask for a pre-approval or proof of funds with the offer.
- One agent. Use an agent who has closed short sales and knows the lender's review steps.
Weeks, not days
How long does a luxury short sale take in Colorado?
Plan on 30 to 120 days from a signed offer to the lender's written approval, longer when a second loan or a HELOC is involved. A complete file at the start is the biggest time saver: hardship letter, two years of tax returns, recent bank statements and pay records, and the signed contract.
If a Public Trustee sale date is already set, the negotiator asks the lender to postpone it while the short sale is reviewed. Lenders decide case by case.
Short sale or foreclosure?
Short sale vs foreclosure for a Colorado luxury home.
| Short sale | Foreclosure | |
|---|---|---|
| Who sells | You do, with your agent | The Public Trustee, at auction |
| Timing | You set the listing; the lender approves the price | The sale date follows the Public Trustee schedule |
| Privacy | Marketed by appointment, discreetly | Public notices are published |
| Remaining balance | Ask for a written waiver of the deficiency in the approval | The lender may pursue a deficiency where allowed |
| Next home | Ask your lender how each outcome affects a future mortgage | Ask your lender how each outcome affects a future mortgage |
Tax and credit effects depend on your situation. Talk to a CPA and your lender; we are not tax or legal advisors.
Jumbo and second loans
What's different about a luxury short sale?
- Jumbo lenders review differently. Many jumbo loans are held by the bank or a private investor, not Fannie Mae or Freddie Mac, so the approval rules come from that investor.
- Every lien must sign off. A first mortgage, a HELOC, a second loan, HOA dues and judgments each need a payoff or a release in the approval.
- Valuation. The lender orders a broker price opinion or an appraisal. Luxury homes have fewer comparable sales, so we send our own sales evidence with the package.
- Who pays the negotiator. Our short sale negotiation company is paid by the lender at closing, not by the seller.
- Since 2003. Brian Lee Burke has been licensed in Colorado since 2003 and has handled short sales and broker price opinions through more than one market cycle.
Homes for sale now
Talk to the short sale desk.
Private, one call, no obligation.
Quick answers
Questions about short sales.
What is a luxury short sale?
A sale for less than the owner owes on the mortgage, approved in writing by the lender. When the loan is above the conforming limit, it is a jumbo loan, and the jumbo lender runs its own review.
Does a short sale hurt my credit less than a foreclosure?
Ask your lender and a credit counselor for your numbers. A short sale ends the loan with the lender's agreement; a foreclosure ends it with a public trustee sale.
Who negotiates with the lender?
The Kenna Group at Keller Williams DTC works with a dedicated short sale negotiator. Brian Lee Burke approves every file, and Richelle Dumas runs the paperwork.
Further reading
From the Kenna network.
Homes for sale now
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Free playbook
The Colorado Luxury Downsizing Playbook.
Sell the estate, buy the right home, move once. The 12-week plan, the tax and cash questions, the ranch, patio, 55+ and golf communities, and the checklist. 8 pages, free.
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Buying, not selling? See buying a luxury short sale in Denver, Denver luxury foreclosures and, if you are behind on payments, your options before a foreclosure sale.
Private consultation
Ask us about a short sale.
303-955-4220A live person answers. Not a robot, not a phone tree.
- Private showings on your schedule, including evenings and weekends.
- Off-market homes from The Kenna Group's agent network.
- One point of contact from the first showing to the closing table.
Kenna Luxury Real Estate is a division of The Kenna Group at Keller Williams DTC (KWDTC).