Considering a short sale is never in the plans when it comes to owning your own home. However sometimes things don’t work out just as planned and an owner may find themselves looking for a way out. One thing for sure, during the short sale process an owner is going to need guidance and support and we understand that going to friends, neighbors, and acquaintances is not easy and most owners don’t want to share that they are facing hard times financially.
When an owner finds themselves facing these hard times, they need to know there are options. The first thing we recommend is to make contact with the lending bank and see if a loan modification or another option is available. It is best to exhaust all efforts before deciding to sale, short sale or foreclosure on a home. A foreclosure is a legal process in which the lender takes back the mortgaged property as a result of an owner not being able to keep current on the payments. A short sale is when the bank agrees to accept less than the amount owed on the mortgage due to an owner not being able to keep current on the payments.
If all efforts have been made and the circumstances haven’t improved, this is the time to reach out to a licensed real estate agent for guidance. A Realtor will not only look at your situation and guide you accordingly, but will explain the different processes to you in advance, support you through the process, and represent you along the way, taking as much weight as they can off of your shoulders. Your Realtor will need your authorization to represent you and to allow the bank to disclose information on your account. Maintaining constant contact between you and your lender, the Realtor will find out if you qualify for any assistance and what documents will need to be completed, compiled and submitted for review.
The lender may approve the short sale during the time the home is on the market and if not, the lender will review it at the time an offer is submitted. At this time an offer may be accepted, countered, or denied. It is important to know that even if the bank approves a short sale, they may or may not choose to waive the deficient balance. In some cases, lenders require an agreement of payments to pay the remaining balance. It is also important to know that lenders of second mortgages and HELOC may also need to approve the short sale. While most short sales are closing in under 6 months, second mortgages, negotiations and other delays may postpone closing for numerous months.
Know that short sales are happening across the country and you are not alone. A Realtor with experience and expertise in short sales will streamline the process for you and be there for any questions or concerns that arise during or after the sale.
Contact Broker, Susan Carleton, to refer you to a Pointe South Short Sale Expert.
If you are in the process of a short sale and are looking for a long term rental, please contact Pointe South Residential Leasing.
