Unfortunately, the following terms have become common in everyday conversations:
In both cases, your home is not worth what you currently owe to the bank for your mortgage loan. There are many reasons why this happened, but the most common is due to the fact that market conditions deteriorated due to a meltdown of the financial markets in late 2008 and real estate values began to fall as unemployment began to soar. It was (unfortunately) the "perfect storm" and we're still feeling the effects of it today and it will take several years for the overall economy to recover from this one!
The Short Sale Process and YOU
As a seller, you will need to prepare a short-sale package for submission to your bank/lender. Each bank/lender has its own guidelines, but the basic procedures are pretty similar from bank to bank. A short-sale package will most likely consist of:
At this point, the process is not unlike a traditional sale - I will work with you to establish a listing price based upon current market conditions and we'll inform other agents (via the MLS) that this is a short sale - pending bank approval. We solicit an offer, submit it to the bank and and wait for an answer. It can be several weeks to several months depending how backlogged they are. We work with an established and credible short-sale transaction management firm (RealtyTMS) who persistently handles all of the communications in a systematic pursuit of a short sale payoff agreement (approval). As of February 2011, the average short sale approval is running approximately four months. I can't stress enough that patience is essential for you and the buyer.
Potential Tax Consequences
Don't be overwhelmed or confused. Selling your home or condo via
short sale is a better
purchasing a short sale property?
The Short Sale Process with the BANK
My short sale services are backed by a 100% satisfaction guarantee! For expert real estate advice & counseling, contact Anthony Rael, Denver REALTOR® with REMAX Alliance at (303) 520-3179. You can also follow Anthony Rael on Facebook!
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