About 3 years ago I met with a man who was losing his home to foreclosure. I mentioned to him the option of a Short Sale. He looked at me like I was from another planet. After a brief explanation, he didn’t understand why he was just hearing about this. He had no clue you could sell your home for less than you owe on it with the lender’s approval. As an informed home seller, he became hopeful. The Short Sale is now a term that people are familiar with. Clients I first meet with think of a Short Sale as a quick way to sell or buy a home. They don’t know it’s a long process. That’s why it’s important to be informed. Often I wonder why the transaction is not called a Long Sale. It would be more appropriate.
The Short Sale takes longer because there are many people involved. You must get approval from the loan company, who will order a Broker Price Opinion (BPO). Consultation with the mortgage insurance company is needed. If you have more then one mortgage on the home- that company will also be involved will their own set of loss mitigation consultants. A lot of paperwork is reviewed and approved in order to get final approval. You may wait one month to six months to even know if your contract is approved. The Short Sale process is long.
If you are a seller who is contemplating a Short Sale on your property, consult a Real Estate Agent. At Avery-Hess, Realtors, we have many agents with experience on the Short Sale process. You will want an experienced Short Sale agent to handle the sale of your home. Become informed by scheduling an appointment for a Market Analysis to assess the current market value of your home- (it’s FREE) Find out if a Short Sale is actually necessary.
If you are a buyer, do not be intimidated by Short Sales. While they are not for everyone, for others Short Sales can be an excellent opportunity. Certain banks will approve a Short Sale prior to contract. Have your buyer’s agent call and find out if the home you are interested in has an approved Short Sale price. This can speed up the approval process of your contract if it’s an “approved Short Sale”. Meet with your Real Estate agent and assess your situation. If you do not have a deadline that you must close by, chances are, a Short Sale may not be a problem for you. When you select the home of your choice and it’s a Short Sale- be prepared for the transaction to take a longer time than normal. In the end, it will be worth it.
When dealing with a Short Sale property, be informed. It’s very important to know all the facts before hand. Be prepared to wait a few months. It will take some of the stress off of you and make the process a better experience. The main thing is to be informed by a reliable source. Once you know all the facts, you can assess your own situation. I know most of my clients will say, “It has been worth it”. What is your situation and is it worth it to you?
For more information on listing your home as a Short Sale/Short Sale Properties available in your area, visit www.barnett-homes.com or call (540)533-4793 and ask for Beth Barnett.