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Very few terms in the real estate lexicon have the ability to incite major heartburn faster than “short sale.” Once a largely unknown (and poorly understood) process to even the most experienced agents, the term has bullied its way into common everyday usage thanks to continued fallout from the contracting economy, the mortgage meltdown and acute sluggishness in the now-recovering housing sector. Simply put, a short sale is a transaction in which the proceeds from the sale of a property at current market value are expected to fall short of the balance owed on the loan securing it. In such a sale, the bank or lender is formally petitioned to approve a discounted loan balance once financial hardship on the part of the seller is proven. A buyer is then able to purchase the home at the agreed-upon price, which is at or slightly below the going market rate.

Alas, we wish it were as simple and straightforward as it sounds. Far from what its name suggests, a short sale is anything but speedy. Short sales are negotiated at least twice, first between the buyer and seller; then ultimately between the seller and the bank. Long vexing delays are the norm after a contract is presented to a bank for formal approval by its loss mitigation department. Typically, it takes several months—at best—to complete a short sale, with no guarantee at the outset of a positive result in the end. In fact, all efforts in the end may not prevent the property from going into foreclosure. Agents have been known to spend upwards of 120 hours on a single case; only to see their efforts amount to nothing when the lender ultimately refuses to budge. Moreover, navigating the short sale process has been compared to trying to nail Jell-o to the wall—only slower and more exasperating. The process is extremely fluid, poorly-defined; and without a clear set of procedures for agents or sellers to follow. A callback might be inadvertently missed which can rotate your file back to the bottom of the pile. Under the best of circumstances, you need the patience of Job, the persistence of a marathon runner and the nerve of a tight-rope walker to manage a successful short sale transaction.

Nevertheless, short sales are becoming the preferred option for sellers who want to try to avoid the stigma of foreclosure and its longer-lasting stain on their credit worthiness. At the same time, buyers perceive purchasing a short sale property as one of the best guarantees of a great deal; while banks have finally realized that they are likely to recoup more of their original investment by pursuing short sales instead of foreclosures. That being said, a short sale remains no less frustrating or time consuming for everyone involved in the process. Until now.

Throughout its 33-year existence, Michael Saunders & Company has been all about embracing new challenges and re-inventing itself whenever proactive change can turn negative market forces into positive opportunities for our clients, customers and agents. In keeping with this decades-old philosophy—and the reality that short sales will be with us for some time to come—we are pleased to announce the premier of our new Short Sale Division, our newest affiliated service.

We are equally pleased to welcome Cristy Carrington Lewis back to Michael Saunders & Company as the division’s Lead Account Manager. Lewis obtained her law degree from The Florida State University College of Law before working as an Assistant Sarasota County Attorney specializing in contracts and transactional law. She then joined Michael Saunders & Company, where she worked as a sales agent for five years; most recently from our Siesta Key office. This past summer Cristy worked at a Sarasota law firm that specializes in real estate and commercial litigation. There she negotiated short sale cases and facilitated loan modifications. By the time she left the firm and accepted this newest career challenge she had taken over senior level short sale negotiating responsibilities and understands the process from every stakeholder’s unique perspective.

Michael Saunders & Company recognizes that short sales are an unfortunate fact of life in today’s market; and that many agents want to tap into this sort of specialized front-line expertise to better help clients who are struggling or unable to make their mortgage payments. Our mission is to guide short sale clients through the blizzard of required paperwork, make sure that all the necessary documentation is accurate and complete; and then submit it properly to the appropriate lender. We then use the best software in the country to track progress on the file.

As either a buyer or seller involved in the transaction, you are always kept in the loop. We communicate with each lender a minimum of once weekly; then provide 24-hour password-protected Internet access for all stakeholders to review their own need-to-know confidential file notes and track our progress on their behalf.

Our services are designed to unburden you and your agent from the massive amount of time it takes to facilitate a short sale; and to make sure that everything possible is being done to complete a timely and successful transaction.

We’ll be ecstatic when we can use this space to enthusiastically declare that we have closed the last short sale in our market. Until then, we will continue to provide the professional resources needed to navigate today’s complex market.