A short sale can be a good foreclosure alternative for those who have the time and financial means to wait out the process. While many people find the process to be complex, there are a few standard procedures for sellers in the short sale process. However, it is important to note that each lender has their own short sale requirements and procedures that can further complicate the process.
Selling A Short Sale
In general, sellers looking to find mortgage debt relief will need to be wait several months before seeing a benefit from the short sale process. The process begins by obtaining approval from the lender to sell the home through a short sale. Once the lender approves the process, the seller must list their home to be sold. The seller has the initial power to accept or reject potential contract offers for the home. However, that the bank holds all of the contract approval power and may not always accept the offer the seller agreed to. Further, the lender can take several weeks or months to respond to or approve of offers.
Because each lender has their own short sale requirements, sellers are often overwhelmed at this stage of the process. Each lender has their own forms that must be completed, as well as mortgage debt resolution forms. Not all lenders will handle the process the same and some sellers may find that obtaining documentation absolving them from the mortgage debt to be challenging. Further, the seller may be held liable for tax obligations associated with the sale and will be solely responsible for obtaining the necessary paperwork from the lender.