The short sale market, only a year ago, was a dismal place. Even today, it remains a woefully deficient marketplace where buyers, sellers and banks are constantly confused and disillusioned by new rules, fraud and bogus selling practices. To put your home in the best possible light, here are some good selling practices to observe.
Get an approved short sale
This is a short sale that has been approved of by all parties involved. Short sales are susceptible to failure because a homeowner has a second mortgage with another lender, or a lender involved has taken out mortgage insurance. The more hands on the wheel, the more likely it is a short sale will fail.
Agents and homeowners must go through 1-3 months of processing so that everyone is on board. This means filing all the documents required to get an approved short sale. Failure to file one document that outlines the conditions of the short sale could forestall or completely derail the process.
The approved short sale will be advertised as such. These are infinitely more attractive to short sale buyers, who have likely become familiar and desensitized to the pitfalls of the short sale process. An approved short sale is the fast track to selling.
Full disclosure is imperative
Buyers and many buyers’ agents have cried foul over undisclosed short sale listings. Agents and sellers have tried to hide the fact that a house is a short sale in the public remarks and realtors’ remarks to make it seem like a better deal. They have also cited seller privacy. Technically there is nothing categorically wrong about this. This strategy is completely at the ethical discretion of a seller and agent. However, in this market a buyer will likely sniff out a short sale when it is listed for 30% or more off the suggested market price, and feel as if they are being scammed.