Selling a short sale property is a great way to avoid foreclosure, but that doesn’t mean it’s easy. In fact, a lot of people who sell short sale end up losing thousands or doing more damage to their credit because of complexities in the process. But don’t let that stop you. Just like any other transaction, selling a short sale property is all about smart planning. Here are some steps you can take to help you sell short sale and avoid common pitfalls. Verify your property’s value. Your bank will want to know how much your short sale property is worth in today’s market, based on current information in your neighborhood. Your agent or broker can give you a comparative market analysis (CMA), which you can attach to your proposal to back up the value you’re planning to sell short sale for. Add up the costs. Short sale costs don’t just comprise the value of the short sale property. Insurance, taxes, commissions, and closing costs all accumulate when you sell short sale, often adding up to several thousands. Again, your agent can help you determine the costs so you don’t get caught off guard when you get the final offer. Determine the total proceeds. Perhaps the most important element for your lender is the total proceeds of the sale; that is, the total amount they’re getting back. This is basically the short sale property value minus the costs of the sale. You will also need to calculate the costs to the lender, or how much they’re forgiving on your loan. You can get this by subtracting the amount you owe from what you expect to get when you sell short sale. Contact your lender. Most banks handle short sale property cases through a Loss Mitigation office. When you call to say you want to sell short sale, make sure you have everything readyâ€"your proposed price, property information, market data, and any financial documents that can come in handy. Get informed on the process and timelines, and write down any documents they will need. The call may take a while especially with big lenders, but it’s important to keep your coolâ€"after all, it’s your short sale property and you’re basically asking them to take a loss. Sell your property. Once your lender has approved the short sale and you’ve found a suitable buyer, you can move on to sell short sale. Your agent can help you market your short sale property and sell faster; this is important since short sales usually run on strict time frames. Once the deal is closed, you pay any fees you owe the lender and walk away from your mortgage without any other obligations.
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