1. How to Do A
Short Sale
Contents
When faced with the danger of foreclosure,
Introduction ..……………………………1
one ready solution is to sell your home and
Estimate of Value..…………………….2
pay off the bank. But, what if the FMV, or fair
market value, is less than you owe? In this Closing Costs………..……………...…...2
case, the bank may prefer to forgive the Direct Approach………….…………....2
difference in order to avoid higher foreclosure
Put Your Best Foot Forward……...3
costs. Here is how to go about it.
2. 2
Obtain An Independent Estimate Of Value
Speak to several realtors to try to gauge what your home is
worth. If you can afford to pay the brokerage and sign an
agreement, then the broker should commit in writing to a
selling price.
Add Closing Costs to This
Again, a broker can assist you with an estimate of these,
including brokerages and administrative costs charged by the
lender. These may be quite large amounts, so take your time
here, and get it right.
Approach Your Lender Direct
What’s does that mean? Explain your situation to an adviser in the customer service
For more terms and definitions,
department. Discuss the gap between the outstanding loan
check out ForeclosureDeals.com’s
glossary page: amount and the net estimated proceeds of the sale. Explain that
http://www.foreclosuredeals.com/G
lossary.php if the bank cannot forgive the difference, the bank may have to
go ahead and foreclose. Play your cards right and they may well
agree – if so, then you can go ahead and sell.
3. 3 Put Your Best Foot Forward At the Sale
Foreclosure Deals
12550 Biscayne Blvd, Suite 306
Miami, FL 33181
On show days, make your house as attractive as possible,
FAX: 1-347-402-6620
Contact@foreclosuredeals.com and leave negotiations up to the agent. People buy on first
If it’s not a deal, we won’t list it here! impressions, so make sure that everything is tidy before a
Find us on the Web: potential buyer arrives.
http://www.ForeclosureDeals.com/
There is always a possibility that you could do a short sale
yourself. However, you may not know all the pitfalls, and a
good agent should be able to cover their brokerage fee
with a better price. This is why an intermediary is always a
good idea when selling under pressure. Besides, you could
always refuse an offer if the price is below the broker’s
estimate.