Short Sale Seller
What is it? Is it time to sell your home?
Not sure what a short sale is? A short sale is when the amount of the outstanding loan(s) are greater than the amount for which the home could sell for. Short sales are usually caused by lower sales prices in a rapidly declining market.
For many homeowners, a short sale is preferred to a foreclosure or bankruptcy. In many instances, the lender will "forgive" the difference, meaning that the sellers are no longer held accountable for the difference between the sales price and the remaining unpaid loan balance.
Short sales require the approval of your lender. Contact your lender first to see if any other loan arrangements could be made that would allow you to remain in the home. If no options are available, ask them if a short sale would be possible and their policy regarding loan forgiveness.
How do I proceed with a short sale?
First, assess the true market value of your house. A qualified REALTOR®, like Cherie Allen, Realtor/Appraiser, will be able to give you a reasonable idea of what your home would possibly sell for based on a market analysis. Beware of websites where a computer estimates your home's market value since they may not have complete information or know important things like neighborhood trends and current listings. They are a good place to start, however, their value ranges are not always accurate.
Finally, get in touch with your lender and tell them of the situation. They may even have a specific department that manages short sales. Ask about their specific procedures. Some lenders will be more able to work with you than others. They may be able to decrease your loan principal or make other arrangements to even help you stay in your home and not have to sell.
When a Short Sale becomes necessary, most lenders will need to give the seller approval to begin the short sale process. They also need to approve the mutually signed offer before granting the final sale. Therefore, Short Sales typically have longer exposure time/days on market, than most listings because they can take upward of 3 months or more to close on. Many buyers are not willing or able to wait that long for a new home.
Lenders will require that you work with a realtor to actively list the home at a fair and reasonable market value price. The Listing (Selling) Realtor becomes the liaison between the lender, the seller and buyers agent to make this transaction come to a successful closing. I have done short sales in the past and am familiar with the process.
I also provide real estate services in Yelm, Tenino, Rainier, Lacey, Olympia, Roy, Spanaway, Parkland. Call (360) 552-8001 or email for more information.