What You Need to Know When Listing Your Home As A Short Sale
As with many struggling homeowners, you may have reached a point where you can no longer manage your mortgage payment. A homeowner, today, have a few options to consider if your faced with a financial burden:
Loan Modification: A few big lenders out there are offering loan modification programs. These programs are offered to stem the flow of foreclosures. The lenders have many different types of loan modifications that run the length of lowing interest payments to potentially eliminating a portion of the outstanding loan balance. However, no two lenders are alike and you need to FULLY understand what these programs are offering and the impact they will have in your future. Remember, if you didn't ask the question originally of the loan type you were receiving (and you're in a subprime) DON'T make the same mistake twice.
HAFA Short Sales: HAFA is a program designed to help homeowners who do not qualify for a Loan Modification under HAMP. There is a separate page dedicated to the HAFA program to help you identify if this is an alternative solution for your needs.
Deed in Lieu of Foreclosure: This is option basically means you are surrendering your interest in the property to the lender in the form of an instrument called the deed in lieu of foreclosure. You must request this from the lender.
Short Sale: If your home is upside down and you need to sell, a lender may allow you to short sell your home. In other words, you sell your home for less than the mortage amount. This agreement must be with lender approvals. So in a short sale, you'll have you the seller, a buyer and then a lender approval. Typical time for short sale is about 6-8 weeks. The hit to your credit is less of an impact that if you were to foreclose.
The Process FAQ
Making the decision to short sale your home is an important step towards the new chapter in your life. I know this decision does not come lightly. It's extremely critical to follow specific lender guidelines to ensure that your transaction is processed with the least amount of impact to you and your future. Here are some very important facts you'll need to know:
- Analyze your hardship: You need to identify your hardship. What has happened in your life that prevents you from continuing to pay your loan balance?
- Price correctly: You need to price your home to be competitive but accurately.
- Marketing is crucial: 4 in 5 homes are short sales. You need more than an MLS listing and a lockbox on the front door.
- Complete the package: It is crucial to the success of any short sale that your listing is packaged correctly to the lender.
- Patience and Communication go hand in hand: It takes time for lenders to process a short sale. Lenders deal with hundreds of new requests weekly. Communication with all the parties results in a much smoother transaction.
As an experienced agent in short sales, I know that my role is very vital to the success of a short sale. By taking strategic steps to get you an offer and important steps to work with the buyer's agent; I've found that my deals go through with very little issues. While many experience short sale approvals anywhere between 3-6 months; I've been very fortunate to close certain deals in under 60 days. The key is understanding how lenders work through short sales and to guide you through the process. I also know my role is to be your agent and protect your interest through all the stages.
With regard to the solicitation of short-sale listing: United Brokers Group is not associated with with government and our service is not subject to approval by the government or lenders. Even if you accept our complimentary service of short-sale negotiation your lender may not agree to change your loan.**
