Tips For Short Sale Sellers

Here are some tips to remember when you are starting the Short Sale process and interviewing potential Listing Agents.

1.  Your first step if you are facing a possible Short Sale on your home is to contact The Homeownership Preservation Foundation.  This is a non-profit organization set up to help families facing foreclosures.  Their hotline is open 24 hours a day/ 7 days a week.  This is one of the most helpful resources available to families in financial crisis.

2.  Try to stay no more than 2 payments delinquent.  Some sort of payment is better than no payment.  Keeping the lines of communication open with your mortgage company can pay off in the long run.   

2.  Interview several REALTORS!  Not all Listing Agents are created equal!  You need to have choices during this stressful time.   

3.  Do not disclose personal financial information unless you know you are going to hire that REALTOR.  The information you tell a REALTOR during an interview is NOT confidential.  If you do not hire that REALTOR they can use the information against you is they happen to have a buyer that wants to look at or make an offer on your house.

4.  Hire a REALTOR who has experience in Short Sales.  Many of the local real estate associations are offering agents free and low cost Short Sale training.  Your Listing Agent should have at least 12 hours in Short Sale training; that is only 4 classes!  The Short Sale process is constantly changing and your agent should have all of the up-to-date information at their disposal!  You should request proof of classes taken, as well as, proof that the REALTOR has successfully closed Short Sales. 

5.  Hire a REALTOR with experience.  There are not many instances where I say that time in the business matters, but this is one instance when it actually does.  REALTORS who have been in the business more than 4 years have seen a high and low negotiation market.  Negotiations are a part of today’s real estate market.  Your REALTOR needs to understand and be comfortable with the process of win-win negotiations. 

6.  Understand who ratifies a contract in the state of Virginia.  This is where most inexperienced REALTORS go wrong.  Even though the bank has to approve a contract on a Short Sale property, the Seller and the Buyer are the only parties to the contract.  The Seller should sign off on the contract and ratify it before they send the contract to the bank for approval.  The bank is a third-party.  They are a contingency, just like a home inspection.

7.  Hire an attorney!  You can also hire a Settlement Company that has an attorney on staff that can conduct the closing for the Seller; the Buyer can still choose their own Settlement Company.  The attorney will help you with all of the paperwork the bank is going to ask for before they agree to the Short Sale.  The attorney can also help  facilitate the Short Sale in a timely manner. 

8.  Explore your future housing options with your REALTOR.  Your lower credit score will effect your ability to rent a home.  You need to decide your best course of action. 

9.  Be patient.  Short Sales are a waiting game!

Tags: sellers, Short Sales, tips