The “short sale” occurs when the outstanding obligations, all the loans against a property exceed the market value of the real estate.
How can I complete a Short Sale?
You do not have to be behind on your mortgage to request a short sale. You just have to demonstrate that your house can not be sold for what you owe. In these situations lenders are sometimes willing to accept less than the full amount due. Most banks will not agree to a short sale in writing until you have a formal offer agreed to between you and the purchaser, with a provision that the contract is contingent upon banks approval.
I recommend that you have a “Go to” professional real estate agent who facilitates the listing of your home and the “Short Sale” transaction. This person will coordinate with the you (the borrower), the bank, the buyers agent and all parties involved. Only one agent should be negotiating with the bank during a short sale. A short sale is a complex process, usually taking somewhere between 2 to 6 months, however it can leave you much better off than the alternative of foreclosure and bankruptcy.
Give a call today for a free Short Sale consultation, whether you are looking to buy or sell in the greater St. Louis area
Adam Kruse, Broker
Posted in: Q&A