Short Sales--Today's Reality

Having a sinking feeling about moving from your current home to a new area as you know your mortgage is greater than the value of your home? Frequently the value of the home is less than the mortgage or mortgages due to taking equity out of the home for vacations, cars and college tuition. If this is your situation, you aren't alone.

Today, numerous sellers are having such a sinking feeling initiated due to a job transfer, marital challenge or such life changing event that was unplanned. I am sorry to say but that adage that Misery love company seems to apply!

Yet, if you or someone you know and love is in this predicament, you should know that you/they can survive the short sale. Though the particulars of an individual situation may vary, the key steps in dealing with a short sale are:

1. Have a Realtor provide a realistic valuation for your property with
multiple comparable properties
2. Make all House Payments, Property HomeOwner/Condo Payments
and Home Insurance Payments up-to-date

Note: Banks typically if not paid the full monthly payment will
pay interest first, then payments and other payments will
be paid.

2. Gather your data: Current Pay Stubs
Past 2 Years Tax Returns
Past 6 month Bank Statements
Statement of Hardship

3. Contact Your Bank, ask for Short Sale Department
Ensure you seek a fax or letter with specific requirements and timeframes
for document handling

Discuss the means that the Bank will handle the difference between
home's value and loan value. Make copious notes!!! Ensure you
know the name and telephone number of your Bank contact person.

Authorize your chosen Realtor to speak directly with the Bank regarding
the Short Sale. You will find he/she can reduce your frustration through
the process.

4. List your home at the price the Realtor suggests. He/she will be looking
to get the most to cover your loan but ensure the house is priced to sell
and to appraise so that you can successfully sell the home.

Though the Short Sale process may not be as straight forward as this "4
Step Process". Yet, these are mandatory step to sell your home when
it's value is less than the mortgage(s).