How To Sell Short Fast

When homeowners find themselves on the short-track to foreclosure, many will choose to sell their homes in a “short-sale” transaction—selling for less than the mortgage amount still owed to the lender. A short sale prevents the owner from going through the trauma of foreclosure and eviction, but real estate experts agree it's not for the “faint of heart.” Among other things, a successful short sale requires an aggressive pricing and marketing strategy designed to get the home sold quickly. And because it involves negotiating with the homeowner's lending institution, a little patience also comes in handy.

Here are some tips to make your short sale a smooth and successful transaction:

1. Be realistic about price, keeping in mind that the lender must agree to the amount of the mortgage forgiven. Ask us to prepare a Comparative Market Analysis (CMA) for you. We'll look at the sales prices from comparable, recently sold homes in the neighborhood or area and price your home competitively to sell it quickly. The lender must agree to discount the balance due on the loan.
   
   
2. Contact your lender's loss mitigation department immediately to request a short-sale application or package. Lenders will require you provide them with various financial records, including checking and savings account statements, the last two years' worth of federal income tax returns, and an accounting of your monthly income and expenses, as well as a hardship letter and the buyer's pre-approval letter.
   
   
3. Work with us. We'll help you navigate the entire short-sale process, from negotiating with your lender to understanding the tax ramifications inherent in the transaction. Give us a call!

1. Lower monthly payment. Perhaps the biggest refinancing savings is reducing your monthly mortgage payment, either by taking advantage of lower interest rates or by extending the term of your loan.
   
   
2. No-cost closing. To eliminate any “out-of-pocket” expenses, simply add the closing fees to the new loan balance and pay off the fees over time. That way you won’t have to dip into savings for settlement costs.
   
   
3. Re-issue your title insurance. A special refinancing rate for title insurance could be significantly less than a new policy. Be sure to use the same company that issued the title policy when you purchased your home.
   
   
4. Re-certify your old survey. If the property hasn’t changed, you may be able to use the same survey company that did your original property survey and save with a re-certification.
   
   
5. Dump your PMI payment. For homeowners with 20% equity or more who have been paying Private Mortgage Insurance, refinancing is an opportunity to use the current appraisal and cancel the PMI premium.
   
   
6. Pay off your equity loan. If your current equity loan is a point or more higher than current interest rates, you may be able to lower monthly payments by rolling the equity loan balance into your new first mortgage at the lower current interest rate.