Short sale politics can be hard enough on you without worrying about ramifications on your credit, but if you’re getting a bad deal on your debt and sale price it can be even more devastating. You can (and should!) negotiate with the banks to make sure they accept the short sale, but you’ll need professional help. This is where a real estate agent can come in handy! Here we’re going to go over why short sales don’t always work out, and how you make sure that the process goes as smoothly as possible.
Is a Short Sale Right For You?
Before we go into how the negotiation process works, you need to be certain that a short sale is the right choice for your future. While you don’t have to be in default to qualify for a short sale, it can have a derogatory effect on your credit report for some time after the sale has been completed. If you want to be able to buy a home and qualify for a FHA loan down the road, a short sale can be a great thing! You’ll want to get the lenders on your side and show them that they’ll get more for the cost of a short sale than they would if they just let the home slip into foreclosure.
Since qualifying for a short sale is really up to the bank, you’ll have to be relentless and make sure the deal works out in your favor. With the right agent your paperwork is more likely to go through, and they’re more likely to return you calls and hurry the process along.
Why Short Sale Negotiations Fall Through
- Prepare for Failure: If your home is about to fall into foreclosure, you need to ask for your case to be escalated; if you can’t prove that you’re going through a hardship like a foreclosure or debt, you may not be able to get the bank to agree to a short sale.
- It’s going to be tough: With a short sale you have to hope that the banks and lenders will cooperate with the process; sometimes they will just make more money by letting the home slip into foreclosure.
- Bad paperwork leads to bad results: You will need to make sure that your file is complete so they (the bank) have everything they need to give your case a fair evaluation.
- Make your case: If friends or neighbors have gone through short sales at the amount you’re asking for. Let the bank know that they can get more money from a short sale than from foreclosure. Make the case that every day the house sits vacant is another day that they’re losing money.
Even if you can get your case to the negotiating table, you’re going to want to have someone who understands how short sales work to get you a fair deal. Click on the link to fill out my free short sale information form.