How to Short Sell a Home

For the last several years, as the economy continues to languish, short sales have continued to represent a large portion of the total homes for sale in Northville.  If you are one of the thousands of homeowners who can no longer afford to keep your home, here are some tips on how to successfully short sell your home.

The first tip to remember when it comes to successfully short selling your home is to be able to verify with your lender that you are experiencing a hardship.  A hardship can be something like the reduction of your income, the loss of a job, a divorce as well as being involuntarily relocated for your job (over 100 miles away).  You must convince your mortgage company that you no longer have the ability to continue making your mortgage payments.

The second tip is to contact your lender and let them know you cannot afford to keep your home and that you are requesting to be approved to do a short sale.  The customer service representative will ask you a serious of questions regarding your financial situation.  If you pass their initial screening, they will then send you a financial workout package.

Once you have received the financial workout package, the third step is to hire a real estate agent who is experienced in short selling homes for sale in Northville.  Your lender is going to require you to list your property for sale with a licensed realtor.  Don’t worry about how you will pay the agent.  His or her commissions will come out of the proceeds of the sale of the home, not you.  Make sure the agent is qualified in short sales.  This discipline of real estate involves a great deal of phone calls and document collection and debt settlement negotiation.  The real estate agent you higher should have at least a year of experience doing short sales and should have recent list of previous clients of whom you can call on.

Once you have your real estate agent, your home will be listed for sale at a price the agent feels is comparable with the other homes for sale in Northville.  While your home is being marketed, your bank will also send out an appraiser to value the home.  The appraisal is the number the bank uses when an offer is accepted by you and then is subsequently sent to the bank for approval.

If the bank approves the offer, your home goes into escrow (or under contract) and the buyer is generally given 30 days to close.  After that, you are done and the short sale is complete.  The whole process from start to finish can take anywhere between 60 days to 180 days, so be prepared for a long wait.

An expert real estate professional from Business Name knows the market and the Homes for sale in Northville can get the job done for you.

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