FAQs for Selling a Short Sale

 

We often talk to buyers about common questions that come up when purchasing a short sale property; however, sellers of these types of properties often have many questions as well. As the potential seller of a short sale, what can you expect? Here we’ll take a look at some of the most frequently asked questions about short sales from the seller’s perspective.

Short-Sales

Should we choose a short sale over a foreclosure?
This is a bit of a tough question. In some cases, it might be easier to let a home go to foreclosure than endure and stress of a short the struggle sale. Whether you should consider foreclosure may depend on the financial and legal consequences of a foreclosure. Before deciding what’s best for you, it’s crucial to get legal and tax advice so you make the most informed decision possible.

How Can a Seller Get Multiple Offers on a Short Sale?
One sure-fired way to get multiple offers is to price your short sale below market value. But beware of pricing your short sale too low because a) the bank is unlikely to take a low bid and b) some buyers might get confused and make lowball offers.

Will a Short Sale Negatively Impact my Credit?
According to FICO, the biggest hit to your credit rating seems to be when there is a deficiency remaining. With a deficiency, the effect on credit for a short sale is almost identical to that of a foreclosure. Without, it’s less. Lenders typically report a short sale on your credit report as “paid in full for less than agreed,” but there are other reporting options.

If you’re a homeowner and you’ve decided a short sale is the right path to take, contact Metrowest. Our experienced professionals specialize in this type of transaction and we’d love to help.

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

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