Be Informed If You Short Sale Your Real Estate

If you are financially distressed, it might be time to cut your losses and minimize the damage to your financial future. If you’re feeling the economic pressure of an impending foreclosure, then consider putting your real estate up for a short sale.

While it might seem like short sales should be a speedy process, they’ve been known to play havoc with many unsuspecting sellers. We’ve created a list of the many short sale pitfalls sellers encounter.

• Settle your accounts – Strive to pay off all your other debt. Your bank might not approve your short sale application if you have judgments from other creditors pending.
• Pay your HOAs – Even if you’re defaulting on your mortgage, it’s important to meet your monthly Home Owner’s Association dues. Your HOA usually has to approve a short sale, so you definitely want to be in good standing when it’s time for them to sign on the dotted line.
• Make sure your buyer is pre-approved – Talk with your real estate agent and have them ensure that your buyer is legitimate. If there is any wavering on the buyer’s side, the bank might not want to deal with the hassle and you’ll be declined.
• Get your documents together – Your bank will want copies of all documents concerning your real estate before they even consider approving a short sale. Remember, they are forgiving you of debt, so do your best to make them want to help you.
• Don’t give up – Even if you’re declined for a short sale several times, there’s a chance they’ll approve you the next go around. Find out why you were declined and try to remedy the situation as soon as possible.
  

Follow the tips above and you’ll be prepared to present a credible account to your bank.

Links:

Short sales

http://homeguides.sfgate.com/short-sale-process-sellers-1171.html

Home Owner’s Association

http://www.nolo.com/legal-encyclopedia/homeowners-associations-hoas-ccrs-29786.html

Declined for a short sale

http://homebuying.about.com/od/shortsale/a/100108_RejectSS.htm