Thursday, January 29, 2009

Short Sale for Sellers

Many homeowners are struggling to make their mortgage payments or have stopped making payments altogether. What are you waiting for? Foreclosure? Bankruptcy?

Have you considered a short sale?

1. First, talk to your lender to see if refinancing is an option. Many lenders would rather work directly with homeowners rather than go through the short sale or foreclosure process.

2. Talk to a Realtor and get your home on the market as soon as possible. The sale can be contingent on a short sale, which means the lender accepts less than what is owed on the property.

3. The seller/homeowner will be required to provide a number of forms to the lender prior to accepting a short sale including: hardship letter explaining why a short sale is requested, income and bank statements.

How much is a short sale?

The bank will be paying out of pocket for the realtor's commission and the net loss. If someone approaches you promising a short sale service with an up front fee, do not sign with them. You shouldn't have to pay for those services. The commission is paid to the Realtor as part of the closing costs approved by the bank.

For more information about short sales contact a Realtor in your area or check out

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