Steps for a Short Sale of a House

Some people are intimidated by the idea of a short sale because it often involves a lot of communication between you, your lender and the potential buyer. It is a measure taken when a property is not worth at least as much as the current loan balance, the seller wants to leave and a buyer is willing to make the purchase. If you do decide to attempt a short sale of a house, keep in mind that the lender could still charge you the difference between the selling price and balance on the loan.

Instructions

1

Contact your lender as soon as you decide that you want to do a short sale to gather all of the information and paperwork you'll need to complete this process. In some cases the lender will only consider a short sale if you're seriously behind on payments or experiencing significant financial difficulties.

2

Hire a real estate agent who specializes in short sales. This person can help advise and guide you through this sometimes complicated process.

3

Gather information about your current mortgage balance and estimated payoff amount. You can find this information on your most recent bill or by calling your mortgage lender directly. You need this information to get an idea of how short you may be in paying off your mortgage when the property sells.

4

Price your home at or slightly above market value. Take the advice of your agent, as he is well versed in how to set a realistic price for a short sale to attract a serious buyer.

5

Accept the best offer from potential buyers as advised by your short sale agent. Submit the sale information to your lender as outlined in the short sale agreement or package you received in the first step.

6

Wait for approval of the short sale from the lender. Once approved, you'll be able to go to closing with the buyer and exchange ownership of the home.