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If you have decided to do a short sale on your home to avoid a foreclosure, there are a few things that you should know ahead of time. There are several common mistakes that a home owner can make in this process, and these mistakes may keep a successful short sale from happening. By learning about these mistakes now, you can be assured that your short sale will have a much higher chance of being approved.
Writing a bad hardship letterIn order to qualify for a short sale, you will need to outline your case to your bank. First and foremost, you will need to be able to prove that you owe more than the home is worth, and second, you have to provide them with a solid reason as to why you can no longer make your payments. The hardship letter is often the most important facet of a short sale and may determine your success.
Take your time when writing your hardship letter and get help if necessary. You need to be persuasive and you need to be able to outline your financial situation to prove that you do indeed need a short sale. Your reasoning must be solid – for example, if you were recently laid off and your income took a significant drop. This in itself would be grounds for a short sale. However, if you simply are tired of making payments on a house that you no longer want, this will not be enough to convince a bank to go ahead with a short sale.1
Not Disclosing Property Problems to BuyersIn order to get a short sale, you need to have a buyer that is willing to make an offer. It is all too common to try to gloss over problems in your home that may keep a potential buyer from wanting to make a deal with you. The last thing you need in a short sale situation is a buyer that pulls out. Be completely honest and if necessary, pay for a home inspection if you can.
It is a very good idea to work with a real estate agent that is well versed in the art of handling a short sale. They can advise you and help you find the right buyer.2
Waiting Too LongThe short sale process can take time, and if you are already 60 days behind in your payments, it may be too late. If it looks as though you are not going to be able to make your payments, you need to take action as quickly as possible. In some areas, homes can sit on the market for years before finding a buyer. Since you will need to have a buyer lined up for a short sale, you will need to get working on the process immediately.
Once again, this is where a professional real estate agent can make a world of difference. You need their help and expertise to make sure that the process goes as quick and as smooth as possible.3
A short sale is a very good option for many home owners. Avoiding these common pitfalls will save you time and money.
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Tags: buy, Carlsbad, Home, House, Oceanside, Real Estate, San Diego, San Marcos, sell, Short Sale, Short Sale Mistakes, Short Selling
Posted In Blog, Sellers, Short Sales
This entry was posted on Thursday, January 14th, 2010 at 8:52 pm and is filed under Blog, Sellers, Short Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.