Avoid The Common Short Sale Mistakes

Getting out of a bad situation with a short sale is a great possibility. However, closing your short sale request with your lender is a delicate process. You need to make sure you take all the right steps with one wrong turn crashing the whole deal. One thing to keep note of is there is no real difference in the short sale process between government loans such as Veteran home loans and FHA loans to conventional loans with Fannie Mae and Freddie Mac.

Speaking of crashing the whole deal. Below you’ll find some common mistakes to stay away from if you are planning to sell your home in a short sale.

First and foremost you want to cooperate with your lender. Keep in mind you need your lender to say yes to your short sale approval. So any flack you give them during the process will hamper your chances of getting your short sale request approved. If they say they need things from you you should get them as quickly as possible to your lender.

Keep current with your homeowners association dues. If you’re having trouble keeping up with your mortgage or you know you’re going to try to short sell your home, you want to make sure that you keep up your homeowners association dues. You are going to need your homeowners association approval to sell your home, the best way to get there cooperation is to pay them.

Tell the truth. This is important, you want to make sure you tell the truth you can count on your lender verifying the information you pass to them about your situation. If they find out that you haven’t been truthful about the information you’ve given them count on your request being turned down.

Be patient. The short sale process does take some time to get through and you may find yourself getting turned down several times before you actually get an approval. Remember the lender has to have it make sense to them to let the house go. If you don’t give them the right deal then I can approve it. So it’s your job and your realtors job to put together the best deal possible. Your lender doesn’t want to go to foreclosure. They would rather sell your home.

Working with the right buyer. If you going to put your home on the market for short sale and count on the buyer to buy you needs financing you need to make sure that they have their financing figured out. Make sure you ask for a preapproval letter from their lender.

Outstanding liens and judgments. You want to make sure that your title is free and clear of any judgments from any other creditors. If you do, you’ll probably want to take care of these before you start the short sale process.

Don’t compare. You need to remember that every real estate transaction is different. Even if your house is exactly the same as your neighbors and they got a short sale approved you can’t compare your self to them. Your income is different, the amount you owe is different, the reasons why you need a short sale is different, chances are the lender is different – everything about you is different so don’t expect to get a deal because your neighbor did.

Stay on top of things. The worst thing you can do is to sit back and wait for other people to get things done. What I mean by this is that you have to pick up the phone if you have a question. Don’t wait for people to get back to you with answers your questions if you have them. Chances are they don’t know the you have the questions you have so make sure you ask.