What Does A Short Sale Mean?
If you are thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale.
A short sale is one where the net proceeds from the sale won’t cover your total mortgage obligation and closing costs, and you don’t have other sources of money to cover the deficiency.
A short sale is different from a foreclosure, which is when your lender takes title of your home through legal process and then sells it.
1. Consider Loan modification first.
Contact your lender to see if it has any programs to help you stay in your home. A loan modification can be such as refinancing your loan to lower interest rates, providing a different payment plan to help you to get caught up, or providing forbearance period if your situation is temporary.
2.Hire a qualified Team.
The most important step is to hire a qualified real estate professional and/ or a real estate attorney who specialize in short sales. Interview at least three candidates who have closed a lot of short sales.
3. Begin gathering documentation before any offers come in.
Your lender will give you a list of documents it requires to consider selling your home and paying off the mortgage less than it owned on. Every lender will have different requirements.
4. Prepare for a lengthy waiting period.
Even if you are well organized and have all documents in place; be prepared for a long process. Waiting for your lenders review of the short sale package can take several weeks to month.
When the bank does respond, it can approve the short sale, make a counter offer, or deny the short sale. The last two actions can lengthen the process or put you back on square one.
A short sale process is very complex and you should work with a real estate professional very close to speed the process along.
If you think you are in a short sale situation or you know someone YOU CARE ABOUT IS HAVING TROUBLE please let us help and evaluate what we can do. Our process includes:
- Analyzing the Situation
- Explain the Options
- Make A Recommendation
There is no costs or obligation and it’s totally confidential. You are not alone!
Please provide us the information to better understand your situation and evaluate how we can assist you in a possible short sale.
In most cases we can help!