I was reading Valarie Swanson's post this morning about short sale timelines and realized I do have something to add that conversation. That's how it goes with most articles I write. Many outside influences trigger thoughts about short sales. It seems to be in my dna, and part of the reason that I've become so successful at being a Sacramento short sale agent.
Believe me, it wasn't a title I intended to obtain for myself, but over the years, it's turned out that way. People tell me how brilliant they think I am because I headed into the short sale pool early on in 2005. I wasn't that brilliant. I was just wading around without a single clue that I'd be swimming in it years later.
The best time to list a short sale is, of course, when you are ready. But when you are ready, might be too late. I often get calls from sellers up against the clock, and I can't help everybody in that situation. Ideally, you want to list your home just prior to default. Some types of loans require default and some do not. There are situations in which you can be current on your mortgage payments and do a short sale.
The problem with being current and then discovering you need to be delinquent because your short sale was rejected is you might have to start over with a new buyer. Starting over with a new buyer means finding a committed buyer for a dated short sale will be a lot more difficult.
It's almost better to cancel the listing at that point. Moreover, some banks are now requiring 60 days delinquency instead of 30. This means if you find out in the middle of September that you need to stop making mortgage payments to be considered for a short sale, you can't resubmit your offer until December 1. How many buyers will wait that long? Because you won't get approval until sometime next year. Not to mention, there are fewer buyers in the marketplace in December.
If you're remotely considering a short sale, talk first to a Sacramento short sale agent. Get the skinny on your loan and your particular situation in advance. Arm yourself with the facts. And please, don't wait for that trustee's auction to be posted before calling. Because the best time to list and sell a short sale is before you are 30 days delinquent.
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