A short sale in real estate occurs when the exceptional obligations adjacent to a property are greater than what the property can be sold for. Short sales are a way for homeowners to keep away from foreclosure on their homes and still be able to pay off their loan by settling with lender.
1. Verify the value of your possessions. If you are advertising the property through a real estate broker, your broker will provide you with an estimate of market value. If you are selling the property yourself, do your own market analysis of the area and your property.
2. Attach up all the expenses of selling the property. If you are using the services of a real estate broker, the broker will present an estimation of closing costs. If you are selling the property on your own (for sale by owner), call a local title company or real estate attorney and ask, as a seller, what the closing costs will be.
3. Do the calculations. Subtract the total amount owed in opposition to the property from the estimated profits of the sale. On a short sale, this will be a negative number.
4. Settle on the amount owed against the property. This will be the total of all loans against the property.
5. Contact the lender or lenders. Talk to someone in the customer service department and tell them the circumstances. They may direct you to a specific department. Talk to a supervisor or manager if possible; this person will have more authority.
6. Ask the lender what its procedures are for a short sale. Some lenders are willing to work with you by reducing the amount owed or making other arrangements. Others will look to the agents involved (if any) or anyone else who’s making money off the transaction to see if they are willing to make concessions to make the transaction happen. Still other lenders will tell you that your debt is your responsibility, one way or the other.