Short Sale SellersHow Do Short Sales Work for Sellers?
Short sales can be a long ride for not only the buyers but the sellers. The distressed homeowner seems to get the short end of the stick, as far as getting their needs meet during this difficult process. Homeowners selling a short sale can be anxious and also need some hand holding to make this unique transaction a successful one. It’s quite important for sellers to be aware of the short sale process and how it works.
-Know who your best buyer is – The best buyer is not a speculative investor who is trying to get the house by making lowball offers. It is in the interest of the homeowner to get an offer close to the market value and find a buyer who will be living in the home.
-The lender may take time – The bank or lender has quite a few short sales to process and may accept, reject or ignore a short sale proposal for an extended period of time, sometimes as short as a couple weeks to as long as 90 days.
-Check the fine print – The lender may release the mortgage, but require the seller to pay what is owed via a promissory note.
-The escrow short sale timeline – Once the lender approves the short sale, they may require the buyer to close very quickly.
-And the bad – The lender can approve the short sale but many things could go wrong with the home and the property may still end up being sold at a foreclosure auction.
Homeowners going through a difficult short sale situation, may feel quite distressed due to the lack of control of the selling process and will need their Realtor to guide them through it. A successful transaction is a great thing, but it does require patience and a lot of hand holding for not only the buyer but the seller.