Easy Steps To Short Sale Success

Easy Steps To Short Sale Success

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Having to step away from owning a home is not easy for anyone, regardless of the circumstances that created the situation. In order to avoid the worst case scenarios, such as foreclosure or bankruptcy, homeowners might consider the selling their home using the short sale system.

While going forward with a decision to short sell your home can be time consuming, there are several steps that can make the entire process less stressful, such as:

1. Before you sell, have an independent real estate assessment done on your home. This will give you a true starting point for determining what your home is currently worth.

2. Hire a realtor that is familiar with the short sale process. Try to find out how successful he/she has been in the past with short sales. Ask if his/her rates are negotiable.

3. Calculate all of the costs involved in selling your home, including realtor's fees, closing costs, etc.

4. Determine the price of homes similar to yours in the area. How does your home's value compare?

5. Based on your home's current value and your outstanding mortgage, will there be a financial shortfall if you sell? (if not, lenders will not accept a short sale request)

6. Draft a Hardship Letter to your lender regarding your inability to continue with the mortgage payments. Let them know that you are considering moving ahead with a short sale and would like their approval. At this point, they may have alternate suggestions to help with the situation such as lowering the cost of the loan.

7. Lenders will usually have forms for you to fill out if they are considering allowing a short sale on your property. Give the lender all the information required make a decision on your request. This could include:

* three actual properties sold in nearby district

* three current listed properties in nearby district

* the condition of your property and if repairs are required, estimated costs

* Brokers Price Opinion (BPO) on the exterior, or drive-by evaluation of the home, and the interior BPO done by the lender.

8. Be aware that selling your home on a short sale will most likely affect your credit score in a negative way. Be sure you understand the recourse, if any, from the lender regarding the difference between the final sale price of the home and the amount of the mortgage prior to the short sale proceeding. Will the lender require a repayment of the difference between how much is owing, and what the net results of the home sale will achieve?

If all of the steps required successfully produce an offer that is adequate, sell the home and make sure there are no loose ends on the part of any participant in this deal.

About the Author:
KeysToFlorida.com is by far the most advanced Palm Beach real estate website. Visit its pages (rich in listings!) for info about the local areas and property types, including Palm Beach's Winthrop House Condos For Sale.



Article Originally Published On: http://www.articlesnatch.com


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