April 16th, 2009 mullinaxteam Posted in Real Estate Tips and Advice, Repost, Short Sale | Comments Off
Considering a short sale can be a daunting task because it is a bit more complicated than a traditional home sale. Knowing what some of the common short sale mistakes are and their solutions can be very helpful for a successful outcome. Here are some of the most common mistakes made with this type of transaction, and their solutions:
- The property is not priced correctly: Be sure that your agent takes you through a detailed listing price strategy so you know exactly where your home should be priced due to its current condition, the other current sales in your area, and how much time you have left to sell.
The short sale Proposal is not fully completed: Be sure that you fully understand the short sale process and exactly what your lender is looking for, so that you can present a complete and cohesive Proposal to your lender.
The first thing you must do to short sell a home is to contact the Lender and find out if they will allow the short sale. This is a time consuming process, because you may have to speak with a member of higher authority to approve a short sale. Once your lender has approved a short sale, a hardship letter must be written by you to the Lender. The hardship letter is to explain why the you can no longer keep up the payments on the home. Bank statements, current year taxes and pay stubs will be required.
Not Enough Follow Up and Communication: Make sure that your agent is following up with everyone involved during each step of your short sale, so that you know right away if your file has been delayed.
Short selling a home can be a big relief to a home owner facing foreclosure or bankruptcy. In addition, the lending institution benefits by at least receiving a majority of their money from a short sale, rather than none of the money with a bankruptcy, or having to pay all the fees that come along with foreclosure.
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