Okay gang, I know, I know, enough already. . . I have been talking and writing and breathing short sales but this has got to be said. With the number of people jumping on the short sale band wagon many are called but few are chosen, and you have to make sure you are actually qualified we need to set the record straight. Yes property is devalued and yes you are way upside down but are you really a candidate for a short sale?
The biggest point to drive home is that you must have a true hardship to qualify. The bank loaned you the money and if you have assets and you have the economic ability to pay back the loan then you are more than likely not going be accepted for a short sale. It is a very timely process with many people investing time and energy to make it happen so it is important to assure that it is a viable option for you. I think it is a great idea to check with a lawyer an an accountant and discuss your situation. Make sure that you are honest with your Realtor because she really can not help you to the best of her ability without honest, accurate information.
Before you even think that you may want to do a short sale make sure you are prepared to be forthcoming and honest about all of your income and dept. You will need to provide a few years taxes, bank statements, and any other source of income that is available to you. More than likely if you have gotten to this stage there is a real tangible reason for your inability to pay your dept. It is vital that when you write your hardship letter is written by you and not an attorney or other party. MOST important, however, is that these items must be submitted before a SHORT SALE contract can even be looked at as a SHORT SALE possibility. So be working on these things as soon as your Realtor takes your listing.
Many people call me and ask me, “Is that a pre-approved short sale?” Now that is a hard one to swallow because there really is no such thing because a short sale can NOT happen unless the bank and the seller agree to the final terms. In other words, per the addendum the seller needs to be satisfied with the settlement that the lender is proposing for the deal to work. It is really a great big jig-saw puzzle with many pieces that have to fit together so really, until it is over – it is just not over.
I hope that this does not come across as a mean spirited article, that is certainly not the intent. I just want to clear up some misinformation that I hear floating around and I am sure that you have heard it too. Thankfully most of our short sales are working but the fact is, they do not all fly, so the best assurance is to lay it all out on the table, take a deep breath, be patient, be really really sweet to your Realtor and she will be really sweet and patient with the lender and hopefully. . .
Sorry if I am beating a dead horse but it keeps coming back to life.