The status of the housing market has made selling homes through a short sale a more common practice. This type of transaction involves homeowners selling their homes for less than what is owed on the mortgage. The process cannot be completed without authorization and approval of the mortgage holder. It has become a common tool to use to avoid foreclosure proceedings.
How Do You Begin The Process Of Selling Your Home Through A Short Sale?
If you wish to sell your home in a short sale, you must contact your lender before offering the property for sale in this manner. It will take many calls to the mortgage holder before you are connected to the right person; lenders do not make this process easy. You will have to submit documentation stating why you are financially unable to pay your mortgage and need to sell the property for less than what you owe. You will also need to give the lender written permission to share any information about your loan with a real estate agent or potential buyer. This will allow the transaction to move more smoothly. You will also be required to get an appraisal of your home showing its current value is much lower than the debt. Once you have received permission to sell your home this way you should contact a realtor to have the house listed in this manner.
What Should A Buyer Expect When Purchasing A Short Sale?
When buying a short sale property you will be able to get a very good deal on a home. However, the process will take much longer than a normal sale. Once you have found a home you like you will be required to submit a bid to the lender. You will have to wait to see if they accept or counteroffer. This process can take a good deal of time and there is risk that the home will go into foreclosure in the mean time. Once the deal has been accepted, the home will proceed through the sale just like a regular transaction.