The home foreclosure and short sale market today is bloated. It is unequivocally a buyers’ market and will certainly continue to be for a few more years. For those selling, they make be asking for nothing short of a miracle to get them out of a house that has become too much of a financial burden. You can make your house more eligible for a short sale by following this short sale etiquette.
Take pains to properly value your short sale
Short sales are often negotiated between the buyer, seller, and agents involved. Those parties will go through the process of valuing a house and then agreeing on a figure. Banks are beset with toxic assets and underwater homes. The last thing they get excited about is settling for a home at a fraction of the price. You may want to warm your bank up to a considerably reduced short sale price before coming at them with a lowball figure.
Do you make too much money or have too many assets?
Banks are not eager to accept short sales. Even a hair off the original value of the loan hurts their profit margins. While you may find someone ready to buy your home and at a universally agreeable short sale price, banks could reject your offer because they find your net worth is inconsistent with the need for a short sale. In this case, if you still really want out, banks will ask you to cover the difference of the short sale. You stand to lose your house and tens or hundreds of thousands extra.