Just because you feel you are upside down in your home does not qualify you for a short sale. I do not know how many times I have been told by a seller their home is not worth what they owe so they are going to walk away or quit making payments, then try and sell (short sale) or let the bank take the house. The sooner you talk with an agent the quicker your stress will go down. Many agents do not let these people know that there are specific guidelines to a smooth and successful short sale.
Banks have been overrun with homeowners attempting to sell their home for less than they owe and so the process can be longer than a standard sale. Banks have over the last three years formed departments and standards to process and approve short sales quicker than in the past. However, many agents do not have a clue what it takes to put a short sale together consistently, if done correctly you can certainly shorten the time frame a short sale has taken and actually sell the home instead of loosing it to foreclosure.
Did you know there is no place on a credit report to report a short sale to show as a negative but there is a section for a foreclosure? So Do You Qualify for a Short Sale?
The first 3 questions to determine if you qualify are fairly simple, they are;
- Do your expenses exceed your income
- Is there a hardship that caused your situation
- Is the likely sales price of your home less than what you owe and the expenses of selling?
There obviously are more questions to go with each of these but basically that is what determines if you qualify. Because so many people had no clue of how to proceed with a short sale there are a lot of myths flying around that just confuse the home seller more than ever.
Contact me for more info and a quick interview – let’s see what we can do to relieve some of your stress. To Successfully sell your home as a short sale it must be listed with an agent.
I am a Certified Distressed Property Expert – and have received special training to assist you in the sale or purchase of a short sale home. Let me help you!
Thank you for your information above, it has been quite helpful. However, I have some questions I was hoping you could answer for me.
I have heard a lot different aspects of doing a short sale and, to no surprise, some things people have told me conflict with one another. I was wondering if you could clear some things up for me. And I ask these questions in regards to residential property in Oregon.
First, in Oregon to go through short sale do homeowners need to be in default? Or could they consider and talk to lenders about potentially doing a short sale if the homeowners expect that they can no longer make payments on their homes?
Second, do you absolutely need to have a potential buyer when trying to qualify for a short sale? Or can that part be satisfied after being okay-ed by the lender for short sale?
Third, I have read and heard from various sources that in order to qualify for short sale homeowners must meet certain criteria (i.e. the home’s market value has dropped, the mortgage is in or near default status, the seller has fallen on hard times, the seller has no assets)? Do homeowners need to meet all the criteria or is just one of them enough? Also, are there other factors lenders look into when determining if homeowners qualify for short sale?
If you could answer these questions for me, it will be greatly appreciated. Thank you.