When homeowners fall behind on their mortgage payments, the threat of a foreclosure or bankruptcy becomes overwhelming. To avoid these problems, many homeowners decide to pursue a short sale. Despite the name, short sales can take up to several months to materialize. Even after all the time and effort, however, just one mistake can lead to a foreclosure anyway.
Learn from These Short Sale Mistakes
A homeowner might be so desperate to free themselves from their mortgage and avoid foreclosure that they make careless mistakes during the short sale process. To make your short sale successful and prevent the chance of a foreclosure, avoid:
- Failing to market the house. Short deals are bound by the lender’s deadline. If you don’t sell the house in time, then the entire short deal may be void. To ensure that your house is sold during the proper time frame, take every opportunity and avenue possible to market the short sale.
- Waiting to speak with your lender. Many homeowners in danger of a foreclosure decide to pursue a short sale without getting approval from their lender. However, just because the homeowner successfully manages a short sale, the lender might not agree and is under no legal obligation to do so. Furthermore, homeowners must adamantly make the case to their lenders that they are under extreme hardship and absolutely cannot pay the mortgage.
- Showing restrictions. Sellers who create appointment restrictions and various rules and regulations limit their potential. Appointment restrictions limit the potential buyers who would have otherwise visited your home, while creating stringent rules such as “no photographs” is likely to turn off buyers. In the end, the seller must be as cooperative, not restrictive, as possible when dealing with both the lender and potential buyers.