A short sale occurs when a financially challenged homeowner sells their property for less than the mortgage balance. This is an excellent option for anyone who has had difficulty making payments and wants to avoid foreclosure or other issues that can arise from their inability to make payments. If this is something you’re considering, you may want to learn about these four short sale mistakes and how to avoid them.
When you’re selling, you should have someone qualified by your side to give you the best possible advice on how to proceed. A real estate agent or other licensed professional will have the experience and technical expertise to guide you every step of the way. This is especially helpful when you need to satisfy specific demands from your lender.
Not Speaking to Your Lender
You may opt for a short sale on your home to satisfy your financial commitments, but you must first consult with your lender. You may complete the short sale only to discover that the lender won’t approve it—and they’re under no legal obligation to do so. You need to make sure to speak to your lender before you make any financial transactions like this, as you’ll need to let them know about your financial hardships and why you think a short sale is necessary.
Failing To Market the Home Properly
You’ll have a specific deadline to sell the home by in order to meet your lender's terms. If you fail to meet the deadline, you may have to deal with some significant financial ramifications. Ensure you’re doing everything possible to market your home, including offering virtual tours, listing it across sites such as Zillow, and working with a real estate agent.
Not Being Ready To Show
Speed is your friend when you’re trying to perform a short sale, and any impediments to quickly selling your home can cause additional stress and headaches. Make sure your home looks as presentable as possible when potential buyers examine it, and have comprehensive photos available. Try to avoid having any showing restrictions that may turn away potential buyers looking for the path of least resistance.
The adage “knowledge is power” holds true regarding these four short sale mistakes and how to avoid them. The professionals at Short Sale Cooperative are highly experienced and well-qualified to help you through every step of the short sale process, including short sale house tax consequences and working with lenders. Don’t hesitate to contact us if you have any questions about our services.