Know Your Role: The Seller in a Short Sale Transaction
Welcome to Know Your Role, a new blog series inspired by one of the thousands of questions asked in a typical real estate transaction. "What do all of these people involved in the real estate transaction actually do?"
Although more frequently asked about title agencies, the underwriter, the loan officer, etc., I am finding it currently necessary to inform my potential sellers about their pertinent role in the transaction before I even list the property. If you don't know your role, the entire process could get more than a little shakey. In today's turbulent market, it's a risk I am just no longer willing to take.
So . . . KNOW YOUR ROLE, MR. SELLER!
When preparing to short sell your property, your first role, as with anything in today's wacky society, is to be an informed consumer. Here in the state of Arizona, your agent should provide you with an approved ADRE Short Sale Advisory . This provides you, Mr. Seller, with a list of pertinent websites that cover everything about the short sale process from where to find tax information to legal advice. It also lists other options available to you aside from a short sale. Read this packet carefully. Consider it your guidebook for the journey you are about to embark upon.
Your next role in the short sale process is entitled Head Communicator. Yes, Mr. Seller, you need to open up to your agent, and provide him or her with important information about your specific situation. It isn't fun to begin the short sale process and later discover that you have two mortgages on the property, not just one. (And yes, that HELOC needs to be disclosed!) As an agent, it is our duty to do our background work, but we eliminate unwanted surprises when you are open and honest with us from the beginning of the process. Likewise, let us know about communications you may receive from the bank. Keeping us in the loop of your interactions will assist us in being the most up-to-date, communicative Realtors we can be.
Throughout the process, you will also be known as Groundskeeper. Many sellers who are upside-down on their mortgages (and particularly, those who plan to move out of their homes before the transaction closes) often falsely believe that they do not need to keep up on basic home and yard maintenance. This is NOT TRUE. You can avoid hefty HOA fees, and upset buyers, by helping maintain the property in the condition it was in when the buyers first submitted their offer. (In other words, no, the ripping of baseboards and removal of doorknobs is NOT typically recommended.)
That, Mr. Seller, is Knowing Your Role!
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