What is a short sale? A short sale occurs when the amount of the loan you owe to the bank is more than the current value of the property. If you need to sell no matter what the value is, your lender will need to approve the shortage. Thus the name 'short sale'.
A short sale can be a way for a homeowner to avoid foreclosure and get out of a bad mortgage, or a mortgage obligation that has become too burdensome, by getting the bank to settle for less that the full amount of the loan. But, short sales are by no means a short process.
What's involved in a short sale? First, I estimate the current market value of your property. Knowledgeable REALTORS®, like me, will give you an idea of what your property would sell for based on prior sales of similar houses in the area. Websites where a computer estimates your house's market value are not always a reliable source since they do not have the most accurate and up to date information and they do not account for the condition of your home or the updates it has inside.
Next, we list your home on the MLS at market value and show the property until we get an acceptable offer. Then, we send that offer to our title agents to estimate the closing costs and create a preliminary closing statement. We then forward everything to your lender so they can begin their review of the offer and determine if the net proceeds, although short of the total loan balance, are acceptable. Your lender will require some documentation from you along the way, and usually within 30 to 90 days, depending on your desired move date, your lender approves the short sale.
Finally, the buyer inspects the home and obtains their funding in order to close. An experienced REALTOR® , like me, will walk you through each and every step of the process, coordinating the activities of all those involved.
Do not pay anyone for this service.
REALTORS® get paid a commission only by your lender, upon successful closing of your transaction.
I have successfully closed over 100 short sale transactions. If you have any questions, feel free to call me anytime for a confidential discussion about your options.