A short sale occurs when the seller engages in a shortened sales process to avoid a foreclosure. There are many reasons for the short sale, but during this process, the seller has rights.
In the process, the seller can hire a real estate broker. In a foreclosure, the bank has the responsibility of listing and selling the house. In contrast, a short sale listing is partially controlled by the seller. The seller can choose a real estate broker that he or she trusts. The real estate broker will be responsible for listing the property, determining the sale price, and all negotiations.
The seller has the right to show the property to a prospective buyer. In a short sale, the seller may still occupy the house. Therefore, a restriction on viewing time is a sole right of the seller. Seller may also deny viewing based on other factors.
The seller’s rights dictate that the seller has be notified when an offer is placed on the house. However, they do not have the right to negotiate the terms of the sale. The real estate agent must notify the bank of all offers that have been made on the house. The agent must also disclose this information to the seller along with any correspondence from the bank based on offers.
Once the bank has accepted an offer for the house, the seller has the right to be informed of the closing date. The seller can request for more time from the lending institution to vacate the house. It is up to the lending institution to approve or deny the request.
During a short sale, the seller does have rights and is informed throughout the whole process. The benefit of a short sale of a house is that it circumvents a possible foreclosure and a negative hit on credit ratings. A short sale can delay the foreclosure process up to six months. During this time, the seller can dwell on the property without paying mortgage.