Minimize The Loss From A short Sale
Foreclosure is the worst thing that can happen to a homeowner. Foreclosure not only takes your home away, but also effects you in many ways. The effect of foreclosure on credit score may be worst and it can reduce enough points on the credit statement. Sometime, foreclosure may disturb your job and even your social statues. Losing a home is really hard and it gets more difficult if you have no other option except walking away.
There are various methods to avoid the foreclosure including loan modification, short refinance and short sale. Short sale is considered a better option to avoid foreclosure if a homeowner is unable to pay mortgage installments. Engaging in a short sale means that you are trying to sell your home less than the amount owed on it. In some cases lenders approving short sales, may ask the sellers for a deficiency judgment. Deficiency judgment means that the difference between the sale price and amount owed on the property that will be paid by the home seller. Short sellers always try to find the ways to reduce the negative impact and financial losses from a short sale.
Ways To Minimize The Loss From A short Sale
There are a number of ways that can be helpful to reduce the loss that may be incurred due to a short sale. Some of them are given here:
Maximizing Your Time
Unluckily, short sale is a lengthy process and takes a long time once the lender approves the short sale. Mortgage lenders tend to closely examine short sale purchase offers once they’re submitted, which adds even more time. If you want to reduce the loss from a short sale, make it sure that you have enough time to complete the process of a short sale before the possible foreclosure conduct. You will need enough time to price a home properly and then market short sale to the potential buyers. If multiple lenders are involved in a short sale, then you may have complications and you will have to get short sale approval form all the lenders. Getting approval from all lenders will take more time than required in case of a single lender.
Pricing Short Sales
Prospective short sale home buyers mostly make the lowest price offers. They assume that they can convince the lender to accept and short sale home sellers need to maximize what they will be offered. It is suggested getting an accurate market value opinion from a real estate broker before listing the home as a short sale. If you feel comfortable with the broker price, then list your home as a short sale. The listed price may be slightly different from the price obtained from a broker. Short sale home sellers and their brokers can then slightly lower their initial list prices at regular intervals until potential buyers start appearing.
Marketing Short Sales
Marketing a short sale is the most important factor that can drive multiple offers. Real estate marketing is all about getting property out in front of maximum potential buyers. A number of real estate agents market short sale using internet, newspaper and also spread the availability of new short sale. Some agents have their own websites to promote the short sale properties.
Improve Home Value
The value of home can be increased by making some cosmetic changes in the home. Changing the appearance by applying new paint will be great idea to look a home attractive.If your home looks dull and needs some repairs it may not be attractive for buyers. It is better to do some repairs before listing the home as a short sale. Listing as a short sale without making repairs will not be getting a better price and multiple offers. If short sale home need repairs and need new look, doing it will add an extra value to the home. If your home’s interior is dark, it is better to start cleaning window and floor cleaning can do much to brighten home interior. Additionally, clearing the interior and exterior clutter and trimming short sale home’s landscape will give it a fresh look.
Negotiating Short Sales
Short sale buyers can judge the depression on sellers so never appear desperate when selling a home as a short sale. Lenders pay commissions to real estate agents to proceed the short sale. You need to hire the services of an experienced short sale negotiator to make your side safe and handle the process with great care. Good real estate agents handling short sales can sometimes tease higher prices from home buyers and also deal effectively with sellers’ lenders. Lenders normally rejects short sale initial offer and back-and-forth negotiation on offer price is quite common. You need to hire the short sale negotiator that has negotiated enough short sales and have required skills and knowledge.