Meet & Consult: Set Expectations
Determine Type of Short Sale and Relocation/Incentive Programs (if applicable)
Collect and Manage Paperwork
Price the Short Sale Correctly
List & Market Home
Work with Your Attorney and BK Trustee
Negotiate the Short Sale
Obtain Short Sale Approval
Note: Jenn Davida nor Future Home Realty are attorneys or represented by attorneys. Legal and tax advice cannot be provided. Sellers should always consult with legal and tax professionals for advice and answers to questions before completing a short sale.
What is a short sale?
A short sale is a property that sells for less than the balance owed on its mortgage/s.
A short sale can be on a home, an apartment building or even vacant land.
A Short Sale is a Privilege, Not a Right
Not every property qualifies as a potential short sale in a bank’s eyes. To qualify as a short sale property, the owner must demonstrate financial hardship. What is Necessary for a Short Sale?
Most short sale transactions are handled by real estate agents who specialize in short sales. There are 4 essential ingredients to a short sale; however, strategic short sales, those without a hardship, are also possible. What makes a short sale work are the following:
- An underwater home – The mortgage amount owed on the home is greater than the current market value.
A willing short sale bank – A bank that is willing to accept a short sale.
A seller with a hardship
A buyer willing to purchase the home
What Role Do Real Estate Agents Play in a Short Sale?
Some real estate agents throw homes on the market that will never close as a short sale, that’s because the agents do not always qualify the short sale sellers. Some agents place unrealistic price tags on the short sale, which the bank will never accept. It is wise to choose an experienced short sale agent who has closed at least 100 short sales.