In the real estate market, a short sale is primarily used in the case when the outstanding loan against a property gets higher than the market value of the property itself. This sale has become a perfect solution for those who can't afford to pay their mortgage and want to walk away from their real estate property without blemishing their financial profile and credit through a foreclosure or bankruptcy declaration. There are a few banks which render this service. To avail it, you would require a willing buyer and lender/bank. If you want to learn how to short sell real estate property, then this article will help you a lot in doing so.
1. Value- First and foremost, you are advised to confirm the value of your property by having a Comparative Market Analysis (CMA).
2. Costs associated with sale of your real estate property-Check out how much money you want to spend on selling your property. For this purpose, you can figure out the total advertising costs, the closing costs for the deal, as well as any broker commissions/fees you may occur. In addition, you are recommended to confirm the deal closing fees taken by your mortgage broker.
3. Calculate total loan value-Don't forget to sum up all loans against the property.
4. Legal assistance-To ease the entire short sell real estate process, you can use the services of a lawyer or your beloved one who is associated with the legal profession.
5. Accountant-Honestly speaking, an accountant's input can really work wonders when it comes to making the entire process transparent and hassle-free. The reason is that like other real estate transactions, short sale also includes some tax implications. So, you must know what you will owe before entering a short sale market.
6. Find a buyer-You can find a buyer to pay off the amount of money your lender will accept in order to do a short sale.
7. Contact lenders-Now you can invite a lender to involve in the deal and share the information on your specific property with him.
8. Sell the property-If your lender found everything well with the deal, then you will get the permission to sell your property in the presence of a potential buyer.
Undoubtedly, these days short sell real estate deal has become a perfect alternative to avoid declaring bankruptcy and to save your credit.
With years of experience, Brad Daddis is dedicated to providing the people with the information that help them avoid foreclosure and get through the tumultuous times of the current economic state. The author also considers any misconceptions or concerns homeowners have in the home sale.
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