How To Short Sale Your Home - Type this into Google and you will get a huge array of information. First things first, a short sale is defined as a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan.
There are situations where you can short sale your home while you are current on your mortgage but to make it easy we are going to assume in this post that the homeowner is behind at least a 2-3 months on their mortgage.
The majority of homeowners that we meet have been turned down for a loan modification and typically are a month or two from the scheduled foreclosure date. Distressed homeowners who are considering a short sale should do the following:
- Consult with an experienced short sale Realtor. An experienced short sale Realtor will make a short sale much easier and they will know how to navigate the complicated short sale waters to help get the home successfully sold.
- Get the last 2 years of your financial information together so the Realtor can send it into the bank. The bank will need the last 2 years of tax returns, 2-3 months of bank account statements, the last 2-3 paycheck stubs, as well as monthly profit and loss statement (this is to show that there is a true hardship in paying the mortgage), and a hardship letter explaining to the bank your situation.
- The agent will then list the property and should discuss reducing the price in a timely manner until an offer has been received.
- Once an offer has been received and agreed upon between the seller and the buyer, the Realtor will send the contract along with the financial statements into the bank so the bank can review it. The bank will order either an appraisal or a Broker Price Opinion otherwise known as a BPO. The appraisal or the BPO will give the bank an idea of what the home is worth in its current condition.
- If the offer is too low the bank will let the listing Realtor know what it needs to net in order to get the short sale approve.
Once a contract has been approved the buyer will go through the traditional process of getting the home inspected, getting the loan approved, and then onto closing.
The bank will pay the commission, the back taxes, and HOA fee's, so if you meet agents that ask for money upfront then it is probably best to move onto another Realtor.
This is the quick version of how to short sale your home. If you are facing foreclosure in the Dallas/Fort Worth or surrounding cities and would like short sale help please click here or call 972-468-5017 to schedule a FREE short sale consultation.
Find short sale listings in Allen Tx and surrounding cities by going to www.TheGoodHomeTeam.com and take advantage of the awesome interest rates that are still available!
The Good Home Team with Keller Williams Realty is a top
producing and highly sought after Dallas Tx Short Sale Realtor team that services the North Dallas
area including North Dallas, Richardson, Allen, Plano, The Colony,
Mckinney, Frisco, and Fairview Texas. Contact The Good Home Team by
calling 972-468-5017 or visit us on the web at www.TheGoodHomeTeam.com.
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