If you have to sell your house and you owe more on it than it’s presently worth, you’ll be performing a short sale. These are some of the hardest real estate transactions, since they are time-consuming and can be frustrating for both the seller and the buyer. If you’re facing foreclosure, time is of the essence in receiving the house on the industry and procuring a buyer. Act to protect yourself from foreclosure.
Find a real estate agent who specializes in short sales. This is the most challenging aspect of the short sale. The Federal Home Loan Mortgage Corporation (Freddie Mac) suggests that you ask family, friends, coworkers and neighbors for recommendations.
Interview at least three brokers and employ the one with the most expertise in short sales. There is no substitute for expertise in this kind of transaction.
Go on the listing agreement carefully. If you’re near foreclosing on the home, the creditor may step in and cancel the contract. Look for clauses which hold you responsible for any commissions or other real estate prices, if the home sells or not.
Ask your broker for a listing of files that you will have to gather for the short sale package. You will have to compose a hardship letter to the creditor, so request the agent’s advice on what to include inside the correspondence.