Short Sale Basics....FYI

The subject of Short Sale is on a lot of minds....Buyers think they can get a great deal...and they can.
Sellers think..."if I can get want I paid, I will just sell with a short sale."....WRONG!

The process of Short Sale is very specific.  The homeowner must be able to show financial need.
These things are necessary:

The owner must have tried for a period of time to sell the home at the price that the market shows would be a price that will appraise.  That is not necessarily a price that will make money or even break even for the seller.

The owner must show financial need.  That means, show they have not had income for ___amount of time and that they are not capable of making the payments on the home.  A Short Sale documentation of this fact must be sent to the lender with a letter asking them to approve a Short Sale.  The bank will send an appraiser to make an appraisal on the home based on the neighborhood sales.Once that has happened (and an experienced REALTOR who knows the process can be of great help for this), then the home can be advertised as a short sale and offers accepted.    At that time, the bank may allow the listing agent to reduce the listing price of the home to the number that the bank will actually take.

Banks all vary a bit in their methods, but all in all, they do have a process and the agent knows how to get the bank's criteria so that the home can be sold in most cases prior to a foreclosure.  In some cases, a home just will not sell and foreclosure is necessary.

If you want more information about Short Sales, please contact me.
DiAnne Arnette, REALTOR 817 925-6540