It seems that everyone knows someone who is facing losing their home to foreclosure. It can also be said that if you know a homeowner in foreclosure, the chances are their lender has told them that a short sale as the strategy to avoid losing the home to foreclosure.
While short sales can save many homes from a foreclosure auction, it is a very complicated process and one that should not be taken lightly by the someone who is not educated about short sales.
If you are a homeowner who is facing foreclosure, a short sale might be for you. However you will need to be open, honest diligent, cooperative and understand that the 5 tips listed below are crucial to your short sale being successful:
1. While you may be able in some instance to convince a bank to work with you, the smart homeowner knows that they are not an expert and should let the authority in the market handle the short sale. Whether an experienced real estate agent, title processor or attorney, make sure the person coordinating your short sale really has experience in regards to the short sale process.
2. Make sure you stay actively involved and you cooperate fully with the timely submission of forms and other paperwork as may be needed by the lender. This includes that you, not your agent or advisor, but YOU write a clear and compelling Hardship Letter. Having someone else write your hardship letter may be the reason that your short sale request will be turned down.
3. Make sure you know what you are getting into. The lender is going to demand a comprehensive short sale package and that will include a full financial package complete with bank accounts, tax returns and more. Your omission to give the bank this information most likely will get your short sale request turned down.
4. The bank gave you a mortgage and they have the right to collect. You have the obligation to disclose your assets and to liquidate them to lessen your obligation to the bank. You cant expect to take less while you are seen living large. Thats just not right. You have be prepared to demonstrate a true hardship.
5. Make sure you dont wait until the last minute before you request a short sale. Most people facing foreclosure dont do anything and just stick their heads in the sand hoping it will all go away. No Realtor or lawyer is a magician. Short sales take time to succeed. If you want to save yourself from the embarrassment of a foreclosure on your familys home then you must act in timely fashion.
Short sales can take as long as 6 months to get accepted. These are just 5 simple strategies you can implement to give your short sale request the best chance for approval. This is not a simple procedure for the bank or homeowner and your continued cooperation can mean the difference between a successful short sale or your home being auctioned off.
Whatever you do, take some action. If you want to try to effect a short sale on your own, some banks are now letting homeowners do just that. If you want to learn more about how short sales should be correctly completed please visit our short sale information resource center for videos and tips as to how to successfully complete a short sale.
By learning about the short sale process you will be better educated to talk about things with your lender and you’ll be more prepared to spot inadequacies and mistakes in the process with any real estate agent that you may choose to hire to represent you.
If you’re a Realtor reading this, you too may want to check out our short sale information. It will help you learn how to successfully execute short sales and generate higher commissions.
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