How To Do a Short Sale
A short sale is that situation when a lender accepts a discount on a mortgage to avoid a possible foreclosure auction or bankruptcy. In a short sale Instead of buying from a seller, we purchase the property directly from the lender for a discount and this kind of sale can occur when the loans against a property are greater than what the property can be sold for.
But there are some certain processes through which short sale should be done; first we need to check the value of our property. If we are going to sell it through a real estate broker then our broker will give us an estimate of market value and if we are selling the property on our own we need to analyze the market and the area and our property. Second we have to add up all the costs of selling the property if we are hiring a broker then he will provide an estimate of closing costs but if we are selling it as its owner then we need to call a local title company or real estate attorney and ask, as a seller, what the closing costs is going to be.
Next we have to, determine the amount owed against the property and the total of all loans against the property will come out in this way. After this we need to calculate and subtract the total amount owing against the property from the estimated proceeds of the sale and this will be a negative number.
We can also contact the lenders or can talk to someone in the customer service department and we can even talk to a supervisor or manager if possible. We can ask the lender about the procedures. Some lenders are willing to work with us after reducing the amount owed or making other arrangements. Others will look to the any involved agents who are making money off the transaction to see if they are willing to make concessions to make the transaction happen but still other lenders will tell us about more things.