Forclosures, Short SalesWhen facing foreclosure, many borrowers decide to attempt a real estate short sale in order to avoid many negative consequences. Unfortunately, though, many people have limited success with their short sale experiences. Most of the time, these failures are caused by careless mistakes. By understanding and being aware of those mistakes, a borrower can increase his odds of being approved for a short sale – and of avoiding foreclosure. Below, a handful of the most common short sale mistakes are highlighted.
Short Sale Mistake #1: Failure to Market a House
As the term implies, a real estate short sale is the sale of a house or property. The borrower has to actively market his house in order to see the short sale through to a successful conclusion. If a solid buyer isn’t lined up and the deal isn’t closed before the bank or lender’s deadline, the entire short sale can fall through. In addition to pulling together all of the necessary documents to demonstrate financial hardship, then, a borrower must actively market his house and line up a reliable buyer. As stressful as the situation is, a buyer must work with a real estate agent to make his house as marketable and appealing as possible. Sitting back and expecting a buyer to show interest strictly because of a low price is foolhardy.
Short Sale Mistake #2: Failure to Communicate with the Lender
All too often, homeowners who are facing foreclosure attempt to find buyers for a short sale on their own – without getting prior approval from their lenders. Just because a borrower finds a potential buyer doesn’t mean that their lender has to allow the sale. Many times, homeowners get so wrapped up in the process of finding buyers that they lose sight of the most important piece of the puzzle: approvals from their lenders. Lenders are under no obligation to allow short sales, so borrowers must take care to engage in a thorough process before getting too ahead of themselves.
Short Sale Mistake #3: Failure to Get Assistance
Many homeowners try to go about the short sale process on their own. Generally, they do this in order to avoid the time and expense of hiring an attorney or a real estate agent. As often as not, though, unassisted borrowers end up failing in their attempts to get approved for short sales. The short sale process is complex and multifaceted; having smart, competent advice is imperative. Once a short sale package is submitted to a lender, the ball is out of a borrower’s court; as such, it is essential that they put their best foot forward, and an experienced professional with short sale expertise can help them do so.