Add a comment | Saturday, November 14, 2009
If you are thinking about short selling your home ( I assume you have already looked into the possibility of getting a loan modification) the first thing you want to do is to get an experienced real estate agent. An agent who has successfully completed and closed at least (5) short sales should be able to get you through the process. As you may have heard; there is nothing short about a short sale.
After you have exhausted the possibilities of a refinance, a loan modification, or any other remedy you may have, your real estate agent is going to need to get some basic forms completed and signed by you to submit to your lender in order for him/her to communicate with your lender. After that is completed and verified, your agent will most likely list your home for sale on the Multiple Listing Service for maximum exposure.
Once an offer is received (in many cases several or more offers will be received) you will be asked to review the offer, consider the merits of the offer, and then accept the offer subject to your lender approval. That’s where the fun begins (not for you but for your agent). Your agent will begin the “negotiation” process working with your lender(s) in order to get their approval of your “short sale” proposition. Remember, your lender is probably going to lose a lot of money accepting your deal, so don’t expect them to roll over and agree to everything you want.
If and when your lender(s) agree to accept your “short pay” you will be notified in writing and then be given a certain specified period of time in order for your buyer to get their financing together and close escrow.
If this all sounds too good and easy to be true, it probably is. Currently we are seeing about only 50 to 60 percent of the short sales closing. The others are not making it through the system for one reason or another. The most common reason for failure is because the buyer is not willing to wait for the approval. Most buyers cannot wait for an unspecified and uncertain period of time just to find out whether or not their offer is going to be approved.
For more information about short sales click here. How to get a $2,500 Visa Card after your short sale.
