5 Things That May Go Wrong When Selling Short Sale

Selling a home under any circumstances is difficult enough; add a depressed market, anxious buyers and difficult banks and you have a recipe for disaster.

There are a lot of things that can and often do go wrong when selling a short-saled home.  Here are five to be aware of and prepare for:

1.  The buyer gets tired of waiting.  Although banks have streamlined their processes, it still can take what seems like forever.

2.  The buyer finds another house.  Home buyers are still looking on the internet while they wait.  If they haven't been well informed about the intricacies of the process or are anxious - or both - they could walk.

3.  The bank says no.  You, as a home seller, actually have to qualify to sell your home for less than you owe on the mortgage.  If your paperwork is incomplete or inaccurate, the bank will deny your request.

3.5  If you have two loans - for example, a first loan and a home equity line of credit - both banks have to agree to take the shortfall.  If the first loan agrees but the second loan doesn't, you don't have a deal.

4.  Your agent hasn't done a short sale before, is unfamiliar with the process,  or doesn't have time to manage it.  Short sales are tedious and time consuming for realtors.  If your agent doesn't have time to manage your file, you're going to have issues.

5.  The buyer no longer qualifies.  Some buyers are right on the edge of being able to afford to buy a home.  If the interest rates go up - even marginally - your property will be back on the market in a snap.

All of these disasters may be avoided with good planning.  

Need help with a good plan?  Let me know.  I'm here to help.  

Vicki Moore
San Mateo Real Estate Blog
call/text                  650-888-9268        
Vicki[@]Call Vicki.com          

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