U.S. foreclosure activity refers to the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property. Typically, this activity is monitored as an indicator of the health of the housing market and the economy at large.
Choose a real estate agent experienced in short sales. They’ll have a deeper understanding of the process, requirements, and potential pitfalls.
With the real estate agent’s help, list the property for sale. Your agent will advise on setting the right price, considering the current market conditions.
Your agent will prepare this document to give an estimated closing statement showing the sales price you expect and all the costs of sale, unpaid loan balances, and outstanding payments due.
With guidance from your agent, initiate a conversation with your mortgage lender or servicer. You’ll typically want to speak with the lender’s loss mitigation department.
With your agent’s assistance, negotiate a relocation fee with the lender. This incentive can help cover your moving expenses. Make sure to get any agreement in writing.
Once you receive offers, review them with your agent. Remember, in a short sale, the lender must also approve the offer, as they’ll be receiving less than the owed amount.
If the lender counters or rejects, there might be room for negotiation. Your agent will handle this, leveraging their experience to strive for the best outcome.
Once the lender agrees to the short sale terms, they’ll issue a short sale approval letter, detailing the terms and conditions.
With the lender’s approval in hand, you and the buyer can close the deal. Your real estate agent and possibly a real estate attorney will guide you through the closing process.
Ensure that the short sale terms release you from any future liability for the debt. Otherwise, the lender might pursue a deficiency judgment for the difference between the sale price and the loan amount.
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