How do you know if your Short Sale is going well? This is a hard question. Especially since the process can be long, repetitive and frustrating even when it is going smoothly! Here are a few tips of what I have found to be the "norm" in the process.
1.) Pricing the home the 30 day price: Each mortgage company has a different attitude towards the price that the home should be listed for. Some have the attitude that the home needs to be listed for what is owed for a specific time period (30-90 days) before the price is lowered. I have found that marketing the home at a realistic discounted priced based on local REO sales has been my best bet. If your REALTOR does not know what a BPO is, you seriously need to question their ability to price your home well.
2.) The contract: Your short sale cannot begin until a contract for purchase is on the table. In short if you do not have a deal, you cannot short sale. A contract needs to be obtained ASAP to start the process. Some lenders will begin the paperwork without a contract, but most will not take the offer seriously until a buyer is ready to move on the property.
3.) The waiting game: Short Sales can take several months. Usually you will not have news for weeks at at time. Your REALTOR needs to call and monitor the transaction closely. If they are waiting for the mortgage company to call them with updates, your file may not be getting the attention it deserves.
4.) Foreclosure Notices: Most Short Sales can delay foreclosures. Have your REALTOR call the mortgage company and the attorney to request a delay in foreclosure to allow for more time for the contract to be worked out.
5.) Have a plan B: You are Short Selling your home. You should be looking for a rental or other living arrangements. Make sure you are ready to move so that you are not caught off guard when the transaction is ready to settle.
6.) What's your Record? Always ask how many Short Sales they have completed and what is their success rate. If they don't have a good answer or they tell you its hit or miss, Call another REALTOR.
7.) Don't wait until its too late!!! If you have a foreclosure date set or have not made a payment in 3-4 months you are at risk and even a great REALTOR may not have enough time to save your home.
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