How to Talk to a Bank in a Short Sale

The best way to talk to your bank about a short sale is get right to the point and make it a conversation about business -- and not emotions. Being forced to sell your home and walk away with none of its former equity is obviously stressful. Problems with selling the home may have been the tipping point for other financial problems you are having, and having to talk to the bank about a short sale could seem overwhelming. Short sales are necessary when you must sell but the home is worth less than the balance due on the mortgage.

Instructions

1

Hire a real estate agent experienced in short sales. If your current agent doesn't have that experience terminate the relationship and hire an agent who does. That may seem harsh but your financial future could be riding on your ability to negotiate a short sale, and your agent should be a key part of your team as you talk to the bank. Having an agent who has participated in short sale discussions could be a plus.

2

Confirm with your real estate agent that your home simply cannot be sold on the open market for a dollar amount matching the amount you owe on your mortgage. Before allowing a short sale the bank will want to know you have done everything possible to sell the home. The bank will also want to know if you have the money to make up any difference between a possible sales price and the balance on the mortgage. The bank could ask for a complete review of your finances, including money that might be available to you in retirement accounts.

3

Prepare talking points for your discussion with the bank. On paper, list your mortgage balance and the fair market price for your home, as determined by a licensed appraiser. Also list all of your debts and assets, such as other real estate including vacant land or a retirement home, all money in retirement or savings accounts.

4

Call your lender and ask for the loss mitigation department -- the group responsible for the direct negotiation of short sales, according to MSN Money. Be polite but persistent as you call back several times if necessary to be transferred to loss mitigation. Telephone numbers for the loss mitigation group aren't usually advertised and the customer service department may simply try turning you over to collections.

5

Send a letter to your mortgage company by certified mail -- to the attention of the loss mitigation department -- if you can't make a connection over the phone. List your home, cell and office numbers and ask that someone contact you directly to discuss your mortgage. Keep trying by mail or by phone until you make the connection.

6

Tell the loss mitigation specialist that you are unable to sell your home for the balance due on the morgtgage and that you must sell through a short sale or allow the home to be foreclosed. Speak with a strong, clear voice as you discuss the situation. Give the specialist all the required information regarding your debts and assets as you negotiate a deal. Include your real estate agent in the discussions where appropriate.