5 THINGS YOU NEED TO KNOW
1. Sale Date: Once you receive a letter from your mortgage company giving you a sale date for your property, you can still choose to do a short sale up to a week from that date (be careful the longer you wait, the harder it may become to have your request accepted). Regardless of how long it's been since you have made a payment, you can still qualify to short sale your home.
2. Short sale Approval: A short sale is not automatically approved, a hardship situation must be proven in order to qualify for this type of sale. Hardships can be due to loss of job, salary/commission loss, job relocation, just to name a few. You will need paperwork to support your case; 2 years taxes, check stubs, relocation letter or hardship letter explaining why you need to sell, copies of bank statements for the last 2 months.
3. Process: Once you decide to short sale your property here is what to expect. An agent like me, will put your home on the market. You will allow people to view your home just like a regular sales process. Once offers are recieved, you will review the offers with your agent in order to select the best offer for you. Once an offer is selected, the paperwork process is started by the real estate agent. IT TAKES BETWEEN 3-10 MONTHS to complete a short sale process. Your agent should be able to walk you thru this entire process.
4. Why should I bother?: A short sale will affect your credit for a lesser amount of time than a foreclosure. A huge part of your life is supported by your credit rating (I.E. insurance, jobs, credit cards,housing) so it's wise to reduce the time any negative activity spends on your credit report. Eventually the negetive items will cost you bigger deposits, higher interest rates, or lower your credit limits.Final tip: pick an agent with experience in short sales. Not all Realtors do short sales on a regular basis and therfore may not be the right choice for you. Your agent should be able to explain the paperwork, the process, give you a time line, explain to you the contracts, and most of all help you price your home appropriately.
5. Agents: Choose an agent experienced in short sales. Many agents can represent buyers, or have done some short sales, you need an agent that is actively selling short sales. They should be able to explain the process, the paperwork, time lines, and most of all be able to price your home accordingly. Unlike a regular sale, there are formulas banks use to decide if a home's price/offer will qualify for a short sale. Your agent has to have the experience to guide you thru the process. Also, if you choose the right agent, it will mean less headaches for you.
Knowledge is the key to success in the current economic situation. Arm yourself with the right information and experience agent to put this behind you. Spend the time to educate yourself and make the best decision for yourself.
