Short Sales: The Process and What to Expect

Step 1: Have you considered all options?

-Short Sale vs. Foreclosure

-Can you get a second job?

-Can you get a roommate?

Step 2: Do you qualify?

-Do you have a valid hardship?

-Has there been a major change in your financial status since the origination of the loan?

Step 3: Working with your Realtor.

-Choose a Realtor with experience: This is extremely important. You are putting a great deal of trust into your Realtor. Be sure to interview them and get references.

-Give complete information: Your Realtor wants to help you and in order to do that, they must know your entire scenario.

-Make your home “sellable”: Remember that you are competing with other sellers. Keeping your home clean and viewable is key to obtaining a successful contract.

-Once you have a contract, the fun begins!

Step 4: The negotiating process.

-Enable your Realtor to work with your bank: You will need to sign a third party authorization giving them permission to speak to your bank.

-Ensure that your Realtor is doing their due diligence by contacting the bank on a consistent basis: Asking for weekly email updates is an easy and effective way to stay informed.

-Be willing to submit financials such as bank statements, pay stubs and tax returns upon request and on a monthly basis: Banks will ask for this information repeatedly.

-Be Patient: Some short sales have been known to take many months. The banks ask for the same things over and over again and their processes are flawed to say the least. Allow your Realtor to take the stress off of you as much as possible.

Deal Killers:

-HOA fees: Stay on top of your HOA dues if possible. Many times, the bank will not be willing to pay these back dues and will not allow you to do so either, That leaves the buyer. Typically, they are not going to be excited to come to the closing table having to pay hundreds of dollars in HOA fines and this can cause a transaction to fall through.