Maryland and Virginia Real Estate and Homes Blog

SHORT SALES ARE NOT FOR EVERY HOME OWNER
WHO CAN’T MAKE THEIR MORTGAGE PAYMENTS.

Many home owners, because of national publicity, believe that any home owner is a candidate for a
short sale solution.  It’s not that easy. THE OWNER MUST QUALIFY.

Some things must happen before your home should be listed as a short sale. 
        1.  You should have contacted your mortgage company and let them know that
        you are in financial difficulty and need a solution. The mortgage company
        may question you about
                a.  assets
                b.  earnings
                c.  have you tried to sell?

Once the mortgage company understands that you are serious, they may send you a “short sale package”
for you to complete with necessary information to return to the bank.  Based on your information, the
bank will advise that you may want to list as a short sale. 

There are several events that must occur for a potentially successful short sale.
        1.  You need to understand the market value of your home. 
        2.  You must list the house for sale with “third party approval required”.
        The “third party” that must approve the contract of sale is your mortgage company.
        3.  When you select a listing agent, make sure to use the services of an agent with
        short sale experience. 
        4.  Understand the market in your area before pricing the home.  Your mortgage company
        will require detailed market information before approving a Contract of Sale.
        5.  Your agent may recommend that you obtain the services of an attorney to communicate
        with your mortgage company because real estate agents cannot give legal advice.
        6.  Make sure you disclose to your agent all mortgages, liens and encumbrances that
        you may have.  HELOC loans, second mortgages, consumer purchases that are a lien
        against the property can make short sales difficult. 
        7.  Make the house as accessible as possible.  You can’t sell it if you don’t show it.
        8.  Cooperate with the bank with timely letters and forms as requested.  The banks are
        not always quick to review and approve short sale contracts.  Everyone involved in the
        process must have patience.
        9.  You must disclose all of your assets to the mortgage company.  Your mortgage
        company will not approve a short sale on your residential real estate if you have assets
        that can be liquidated to pay your deficiency. 

Consider the above and if you believe that you may be a candidate for a short sale, contact
Homefinders and we’ll help.  800-711-7988.