“I need to sell my home, but I owe a lot than what it’s worth. So to sell, I need to do a short sale. How do short sales work?”
***ANSWER:
Simple question. Complex answer.
People need to do a short sale when they want to or need to sell and the proceeds from a sale won’t be enough to pay off the loan.
Qualifying for a short sale is the same as and exactly opposite of qualifying for a loan.
Huh?
What I mean is that you go through a similar process, but instead of showing the bank that you can make the payment, you need to show them you CAN’T make the payment.
So here’s the process:
1. Find a sharp, organized agent who REALLY knows short sales and has done at least a dozen. (I’ve done about 200).
2. List your home for sale, subject to the bank approving your short sale. Because many buyers and agents avoid short sales, you’ll need to price your home a bit below market to attract interest.
3. Negotiate and accept an offer subject to the bank’s approval of the short sale.
4. Send in your “short sale package”
5. Wait for 2-16 weeks for your short sale to be approved, negotiated, or denied. Your agent should be in regular contact with the bank’s “loss mitigation department” that is processing the short sale.
6. Sell your home a 2nd or 3rd time(?) Many homes fall out of escrow because the buyer loses patience, so you may need to sell your home several times before it sticks.
7. Get short sale approval and close within 14 days.
Believe me, this all sounds much easier than it is.
If you need to sell your home or investment property and need to do a short sale, call me at (858)457-KENT.
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