A short sale is a negotiation between you and your lender to sell your home for less than what is owed. Since you may not be an expert at negotiating with a lender. Here are a few expert tips for short selling your home:
- Know your mortgage balance(s)
The first thing you need to do is find out how much you owe and how much your lender is willing to forfeit. Since the lender is taking a loss, it will set the selling price of the home. If you took two mortgages from different lenders, each lender has to approve the mortgage and set the price it’s willing to accept.
- Put together a short sale team
When you sell your home in a short sale, you need to assemble a team of professionals to help you walk through the process. First, hire a real estate agent who specializes in short sales, then a real estate attorney and tax advisor.
- Prepare your documents
A short sale needs your lender’s approval. Your lender needs to see why this is the way to go. Our short sale team are skilled in short sale negotiation. Having the right team along with the right documents will set up a smooth short sale process. Generally, the bank asks for the following documents:
– Seller’s hardship letter
– Authorization letter
– Last two bank statements
– Last two tax returns
– Last two pay stubs
– Purchase contract among others.
- Be Patient
Standing on your agent’s neck, seeking a fast reply doesn’t help the process. Short sales take months to complete. The bank takes their time before giving a reply. Which is conceivable, since they are accepting to lose some money, it takes time to find a buyer and close the deal. So, just be patient and work with your real estate agent
- Expect Demands and Requests
Get ready for the worst, but expect the best. There’s a whole lot of backwards and forwards between you, your team of experts and the lending company. While dealing with a team of experts really helps to make sure your short sale package is well-organized, the lender will make additional needs and demands. Reply to and submit the information at the earliest opportunity so as not to delay the process.
So, if you’re trying to ditch a home you can’t afford or fighting a foreclosure, a short sale offers a way out. However, it won’t be a smooth ride, hence you have to prepare for everything and have a good team working for you.