So...have you heard the term " short sale?"

Seems as though this particular set of words is getting around. I find more and more people becoming intimately aquainted with what a short sale is, and there are mixed reviews. Some pleasant some not so pleasant.

I don't believe there is any one process that is going to leave everyone happy in the end. Certainly not the lenders. But, there are alternatives to foreclosure that might make it a bit more bearable, and a bank short sale is one of them.

 What exactly is a Short Sale? Well, Wikipedia defines a short sale as:

A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sal eprocess, because it allows them to avoid foreclosure, which involves hefty fees for th bank and poorer credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency.

The short version: the lender accepts less on the house then what is owed, and if all works out borrower walks away with a deficiency waiver which means the lender has agreed to relinguish its right to come after you at a later date to collect the difference in what was owed and what the house actually sold for.

Not all short sales are created the same. Do they all work out? No, not all of them. But here are some tips that may help you to a successful short sale closing.

1. Hire, not only a trained Realtor, but one who has experience with short sales. Unfortunately, not all agents are created equally. There are tons of short sale training courses, but these courses do not fully prepare you to negotiate and close a short sale. Nothing like first hand experience.
2. Gather all your financial paper work. Bills, paystubs, tax records, bank statements etc. The lender will require to be on file for review. Keep all future bank statements and paystubs, they do from time to time ask for updates. And since time is of the essense if you already have them handy you won't have to go hunting for them.around. I find more and more people becoming
3. Communication! This is a biggie, if anything changes with your situation or you have received communcation for the bank or the banks attorney call your Realtor ASAP! Some things can be avoided if we keep the line of communication open.
4. Patience. You have surely heard the term "patience is a virtue." This will come into play over and over again throughout the Short Sale process. There is sometimes a lot of frustration involved, let your Realtor handle that. Your job is to concentrate on your family and life and leave the details up to the agent representing you.