Here’s everything you need to know about short sales in five points.
I was talking to an asset manager last week, and he told me that he was putting 300 foreclosed homes on the market in January. This set off my alarm bells, so today I want to discuss everything you need to know about short sales in five bite-sized points:
1. What is a short sale anyway? If you owe your bank $400,000, but you can only sell your home for $300,000, that’s a short sale. The bank has to give all parties involved permission to do this, and it’s a common option for people facing foreclosure.
2. It’s a game. I know it sounds weird, but short sales don’t follow typical logic. I’ve been in the business for a long time, and I’ve seen banks approve people for short sales who didn’t need or deserve it. I’ve seen people who could have really used the help be denied. It comes down to the whim of the bank, so that’s why I call it a game.
3. Move fast and follow orders. If you want the bank to approve your sale, you have to act as fast as possible and do whatever they say. They make the rules, so no matter how foolish their request is, you have to follow it quickly.
4. Why even bother with a short sale? If it’s just a game, I understand why you wouldn’t want to attempt a short sale in the first place. However, a successful short sale removes your debt and clears your record fast. On top of that, banks sometimes give out bonuses for completing a successful short sale. I have personally handed out a check as large as $20,000 this way.
5. So who can qualify for a short sale? Anyone who is six or more months behind on their mortgage, is facing foreclosure, wants to sell their home, and wants to avoid bankruptcy. You have to be ready to play the game and do things right, but if you do, you could avoid some tough circumstances.
If you or someone you know may need to make a short sale, please call or email me. I have plenty of experience in this department, and I’m always willing to help.
