Short Sales Aren't Hard - 5 Strategies To Make Sure You Get Your Short Sale Approved | Mortgage

Short Sales Aren't Hard - 5 Strategies To Make Sure You Get Your Short Sale Approved

by BrandonFletcher

It seems that everyone knows someone who is facing losing their home to foreclosure. It can also be said that if you know a homeowner in foreclosure, the chances are their lender has told them that a short sale as the strategy to avoid losing the home to foreclosure.

While short sales can save many homes from a foreclosure auction, it is a very complicated process and one that should not be taken lightly by the someone who is not educated about short sales.

If you are a homeowner who is facing foreclosure, a short sale might be for you. However you will need to be open, honest diligent, cooperative and understand that the 5 tips listed below are crucial to your short sale being successful:

1. While you may be able in some occasions to convince a bank to work with you, the prudent homeowner knows that they are not an expert and should let the expert in the market handle the short sale. Whether an experienced real estate agent, title processor or attorney, make sure the person facilitating your short sale really is knowledgeable in regards to the short sale process.

2. Make sure you stay actively involved and you cooperate fully with the timely submission of forms and other paperwork as may be needed by the lender. This includes that you, not your agent or advisor, but YOU write a clear and compelling Hardship Letter. Having someone else write your hardship letter may be the reason that your short sale request will be turned down.

3. Make sure you know what is expected of you. The bank is going to want a comprehensive short sale package and that more than likely include a full financial forensic picture complete with bank accounts, tax returns and more. Your omission to give the bank this information may get your short sale request rejected.

4. The bank lent you money and they have every reason to collect. You have the obligation to reveal your assets and to liquidate them to reduce what you owe them. You cant ask them to take less while you are cruising around town in your Porsche. It just does not work that way. You must be ready to show a reason you are unable to pay them back (i.e. show a hardship.

5. Make sure you dont wait until the last minute before you request a short sale. Most people facing foreclosure dont do anything and just stick their heads in the sand hoping it will all go away. No Realtor or lawyer is a magician. Short sales take time to succeed. If you want to save yourself from the embarrassment of a foreclosure on your familys home then you must act in timely fashion.

Short sales can take as long as 6 months to get accepted. These are just 5 simple strategies you can implement to give your short sale request the best chance for approval. This is not a simple procedure for the bank or homeowner and your continued cooperation can mean the difference between a successful short sale or your home being auctioned off.

Whatever you do, take some action. If you want to try to manage a short sale on your own, some lenders are now letting homeowners do just that. If you want to find out more information about how short sales should be properly executed please visit our short sale information resource center for videos and tips as to how to successfully complete a short sale.

By learning about the short sale process you will be better educated to talk about things with your lender and you'll be more prepared to spot inadequacies and mistakes in the process with any real estate agent that you may choose to hire to represent you.

If you're a real estate agent reading this, you too may want to visit our short sale resource center. It will help you learn how to properly execute short sales and generate higher commissions.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

If you're an agent, make sure that you can successfully guide a homeowner in foreclosure. Learn the correctway to perform Short Sales.