Short Sales: What you need to know as a seller | ArticlesBase.com
Filed Under Real Estate | Posted on December 9, 2009
A short sale is an option that is available to sellers that will prevent Foreclosure. This specific type of real estate sale is becoming more popular as many people are becoming unable to meet their mortgage payments because of the tough economic times. If youre trying to sell a home in this crowded real estate market, a short sale will allow you to competitively price your home and it may save you from Foreclosure.
As a seller, you need to know that completing a short sale will leave you without a profit on your home. The home will be sold for less than the balance of your mortgage and youll need to qualify for this type of sale before being able to use it. For this reason, its best to work with a licensed real estate agent who has experience with short sales in order to get the best results with process. Look for a Certified Default Resolution Specialist (CDTS) to handle your short sale. These are special real estate agents who have been trained to handle short sales and other similar real estate transactions. Since theyve received special training and certification you can be sure that theyll be able to guide you through this somewhat complicated process.
In order to qualify for a short sale, youll have to show the bank that you are under financial hardship. You will also need to show that the value of your home wont cover the balance of the loans against it. Typically, youll need to show income verification and bank statements to a lender to prove that you required a short sale. In addition, youll need to turn in a statement that explains your financial hardship. These documents in and of themselves can be hundreds of pages long, which is why having an expert real estate agent is a good idea. The bank or lender will be responsible for the closing costs and the real estate agents fees.
Under a short sale, your home will be sold as-is, so you wont have to make any improvements to the home in order to make it more saleable. You may have to put down some out of pocket money depending on the offer you receive, the deficit of the loan and the lenders preferences. Your bank or lender will not allow a family member to purchase your home in a short sale.
Contrary to its name, a short sale does not happen extremely quickly. It can take up to four months or as little as two in order to get the short sale complete. This timeframe starts after an offer for the home has been received. Knowing the length of time that these sales normally take is helpful in order to prepare yourself for the process. If you are on the brink of Foreclosure, your certified real estate agent may be able to delay the Foreclosure sale if there has been a reasonable offer for your home.
Even with these drawbacks, a short sale may still be the best way for you to get out of your current mortgage. Speak with a reputable real estate agent to get started with the process.About the Author:
Joe Cline writes articles for Austin real estate. Other articles written by the author related to Austin real estate blog and Lost Creek Austin can be found on the net.
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