Selling your home as a short sale means that the property is worth less than what you owe to the bank. There are many factors to consider when trying to decide if you should sell your home as a short sale. If you can answer Yes to the following questions, then it is possible that you are a good candidate for selling your home as a short sale.
1) Can I prove to the bank that I cannot afford the payments anymore?
2) Do I have a hardship, such as a divorce, medical bills, mental or physical disabilty, loss of a job, or lack of savings?
3) Do I not have enough money to make up the shortfall if I sell it for less than what I owe?
4) Do I know for sure that my home is worth less than what I owe, including recent comparable sales to prove it?
5) Am I in danger of foreclosure if the bank doesn't accept a short sale?
6) Can I afford the real estate taxes anymore?
7) Do I have a second mortgage on the property, such as a line of credit, that I cannot afford anymore?
8) Do I have an attorney who specializes in short sales?
9) Am I willing to take a hit on my credit rating for a couple of years due to the short sale?
10) Have I been forced to miss payments on my mortgage due to hardship?
Keep in mind that your primary mortgage holder may be willing to let you sell short, but your second mortgage holder may not, or vice versa. Be aware that it could take many months before the bank will approve or not approve the short sale. You should consult a short sale attorney first before starting the process, and if she/he says you are a good candidate then go ahead and list your home. Once you sign an offer, that contract will be submitted by your attorney to the bank and the short sale process will begin. For all intents and purposes it doesn't really matter what the offer is because you are short and owe more than what the home is worth anyway. But the bank will decide if they want to accept that shortfall, or if they will attempt to get more money from the buyer or not.
Kathy Barkulis
Re/Max Suburban
Arlington Heights, IL
847-385-3015
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