A short sale is when Seller owes more on their mortgage than the home is worth or the proceeds they will receive at settlement. A good Realtor will work with you and advice you how to proceed in working with your mortgage company even before you list your home to get an idea how you should proceed with the short sale. Some banks are more willing to work with Seller's in short sale situations than others. If your bank proves to be difficult or you have multiple mortgages on your property, it may be better to hire a third party to help you negotiate your short sale on your behalf. These companies typically charge the seller a few hundred dollars and the buyer anywhere from 1% to 3% of the selling price. A short sale negotiation can take from a few days to 6 to 12 months. Today banks are more willing to do a short sale than ever before. If a bank has a choice between a short sale and foreclosure they will choose the short sale in almost every situation.
If you have any questions regarding the short sale process, please contact me to discuss further.
Jeffrey Hoover, Realtor