The definition of a short sale has nothing to do with the time it takes to sell your home in this market. Rather, a short sale is the agreement of your lender to negotiate a sales price for your home that is less than what you actually owe. It can be an alternative to foreclosure but is a very lengthy and tricky process that not all homeowners will qualify for. I've put together a short quiz for you to see if you might be a candidate for this.
- Do you owe more on your home than it's worth? This is often the case these days and the only way to know is to consult a Realtor for a market analysis of your home.
- Are you behind on your mortgage?
- Have you had a financial hardship that has caused you not to be able to make your mortgage payment? This could be a medical situation, death, divorce, loss of job, etc. The bank will make you prove this by asking for bank statements, W2s and other documents relevant to the situation. Be prepared to provide these quickly to ensure a quick approval.
There are other factors that could be considered when asking the bank to agree to a short sale a
nd every situation is different. The process is long and arduous but in the long run is a better for the homeowner than foreclosure which can follow your credit for 10 years or more.
The bank will require you write a hardship letter to present your case. You will have to provide any supporting documents at the time of sending the letter and they could ask for more before giving you an answer. Once it has been approved, you will sign a written authorization to allow your Realtor to speak with the bank directly about your loan. The bank will then advise your Realtor what they need to get the home on the market. This is usually a market analysis to prove the value as well as a marketing plan. Most of the time they will start the home at full market value and then reduce it systematically until offers are presented.
As the homeowner, you will probably not have any say so in the negotiation of the deal since you are not allowed to profit from the sale. I have heard where homeowners have been involved to some extent but not very often. You will still be able to occupy the home during this process and will be required to maintain the home and keep it in the same condition as it was when the bank agreed to the short sale.
There are many other factors and things to know before asking your bank to agree to a short sale so please consult a licensed Realtor beforehand. If you live in the North Georgia area and need assistance with short sales, please don't hesitate to contact me.
Steve Rider REALTOR with Keller Williams Realty Lanier Partners Braselton Ga, selling homes in Winder, Braselton, Dacula, Lawrenceville, Buford, Grayson, Loganville, Monroe and surrounding areas of Barrow, Walton and Gwinnett County Georgia. Go to WWW.SteveRider-Realtor.com to see my featured listings or search for your new home.
If you're looking for a home in Northeast Georgia contact me either by clicking on the email link or call me toll free at 800-765-0460 or 404-663-7063 direct. I'm a life long resident of this area with life long knowledge of the market.
Copyright Steve Rider All Rights Reserved Atlanta Real Estate Short Sale- Are you a candidate?
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This was helpful, I have a friend that I will forward this to. If you ever need a mortgage lender who makes the process as enjoyable to the customer as possible; I would love to help. I live in Loganville and close where ever is convenient to the customer.
See my profile on Linkedin.