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How To Sell A House In A Short Sale

Posted Monday, February 23, 2015

When you are looking for the answer to “What is the best way to sell my house?” one of the answers may be to offer it as a short sale. Short sales have become more common in the last ten years and many real estate professionals prefer this method for a quick sale.

What Is A Short Sale?

A short sale is when the owner of a home is given permission by the mortgage holder to sell their home for less than what is owed on the loan. These types of sales can only be approved by the loan holder, and the owner must have this approval prior to offering the home for sale in this manner.

Once you have the ability to place your home up as a short sale, home owners would benefit from working with a real estate professional to help market the property. Many buyers are specifically looking for homes that are offered as short sales because the buying process can be quicker than buying a home in other ways.

Working With The Lender

If you want to sell your home as a short sale, you must contact your lender. They will provide you with the information that you will need to provide them to start the process for approval. While every ender may have specific requirements to approve a short sale, lenders most commonly require the following information:

• Reason why you can no longer afford the mortgage on your home.
• Proof of the financial distress you are suffering such as proof of loss of income.

Many people have life changing events that cause them to lose the ability to pay for their mortgage like a divorce, a death in the family, or becoming disabled. Others lose their income due to layoffs or other employment issues. The lender will require you to explain your financial situation and provide proof.

Selling Your Home

Approvals are usually granted in a very short period of time. New federal laws require lenders to process these requests in a timely manner so that homeowners can avoid foreclosure. One you have received that approval, you are free to offer the home as a short sale.

Selling your home as a short sale can be very beneficial to the homeowner, especially if they need to sell the home quickly. So when you ask “How do I sell my house quickly?” do not be surprised if the real estate professional you are working with recommends a short sale.