Steps To Sell Your House With A Short Sale

Posted on: 25 April 2017

A short sale is an alternative way to sell a house, and it is typically used when a person owes more on the house than what it is worth and is having problems paying for it. When you use this method, your lender will allow you to sell it for a price that is less than your principle balance on the loan. If you are interested in this option, here are the steps you will need to take to make it happen.

Get it approved through your lender

The first step you must take before choosing this route is getting approved through your lender for a short sale. This is not always an easy process to go through and your bank may tell you no, but there is also a chance the bank might agree to let you do this. If so, the lender will give you clear instructions as to what you must do to get the ball rolling, and the main step you will have is filling out paperwork and submitting all the necessary documents.

Complete all the necessary paperwork

The paperwork you must complete and the documents needed for this to happen may be a lot more in depth than you think, but this is a necessary step when using a short sale. Your lender is likely to want to see financial documents, such as W-2s and tax returns. The lender will also require that you write a letter of hardship, which is a letter that describes why you are having financial problems.

Put your house up for sale

Once the lender has everything that is needed and gives you the okay to move forward, you will need to choose a real estate agent to help you sell your house. When using a short sale, the lender will want to receive an offer price that is at least close to the amount you owe. It does not have to be equal to or greater than this amount, but there is a better chance the lender will accept an offer if it is somewhat close. Because of this, you will need to price the house at the highest price the agent thinks you can possibly sell it for.

Submit the offers to the bank and wait for an answer

If an offer comes in on the house, you must submit it to the lender to be reviewed. This is a process that can take time, so you should not expect to hear an answer back quickly. It may take 30 days or longer for this to happen.

Selling a house through a short sale will generally take more time than selling a house using traditional methods, but it can be a good solution if you are behind on your payments and need a way out of the loan. To find an agent to assist you in this, contact a real estate agency today.