Tips for homeowners considering a short sale
Article published 02.10.09
By Michele Lerner
Examiner
Tips for homeowners considering a short sale
But handling a short sale is extremely complex and can be frustrating for all sides in the transaction.
Travis Hamel Olsen, president of the National Short Sale Center, provides the following tips for homeowners considering a short sale for their “underwater” home:
Top Tips for Homeowners Considering a Short Sale (Courtesy of National Short Sale Center):
1) Be aware. Appearance counts. Keep your home and landscaping looking fresh and inviting. Inspections are important. Whenever possible, leave utilities on so buyers may conduct inspections.
2) Be patient. It takes time for your lender, and their investor, to review your short sale request. While many lenders are moving faster, 8-12 weeks is not unrealistic.
3) Be prepared. Now is the time to begin compiling financial documents including: current pay stubs, two years of asset statements (retirements, stocks and bank statements) 1040’s & W-2’s. Provide updates every 60 days. Specialty loans and government loans may take longer to process Short Sale requests and may require homeowner counseling.
4) Be responsible. Whenever possible, pay your taxes, HOA dues and utilities. If you can pay something to your mortgage lender, do so. A good faith payment goes a long way, allowing a mortgage to go into “Collection,” “Recovery” or “Charge-off” status only hurts the chances for success with a short sale
5) Be present. Occupy the property, whenever possible; keep your primary residence as your primary place to live. Once a property is vacant, many lenders will use the right of Property Preservation; the lender can change the door locks and secure the property, slowing down the process of selling your home.
6) Be responsive. Respond to e-mails and phone calls from your Realtor and lender. Read your mail, answer your calls, don’t wait until the last minute to seek help. The sooner you start the process, the better chance of success you’ll have.
7) Be smart. Always seek professional advice from a qualified attorney and an accountant specializing in Short Sales/Pre-Foreclosure Sales.
8) Be optimistic. Life happens, make peace with yourself and your lender over the process. Life brings many changes—let go of the guilt and more forward, it will help relieve some of the stress.
Back |
