Home Add to Favorite Contact Submit  
             01 February, 2023

Category:  Articles » Real Estate » Home Buyers


How to Do a Short Sale With Real Estate

         Views: 2359
2007-02-25 07:53:34     
Article by Izzy Buholzer

Are you "upside down" with your real estate investment? Or to put it another way, are the outstanding loans on your property greater than what you could get if you sold the house or property in today's real estate market? If you are in such a situation it is possible to make a "short sale" and cut your loses before they grow bigger. Here is a step-by-step guide to making a successful short sale on your real estate:

1. Verify the value of your property

If you are selling the property through a real estate broker, your broker will provide you with an estimate of market value. If you are selling the property yourself, do your own market analysis of the area and your property.

2. Add up all the costs of selling the property

If you are using the services of a real estate broker, the broker will provide an estimate of closing costs. If you are selling the property on your own (for sale by owner), call a local title company or real estate attorney and ask, as a seller, what the closing costs will be.

3. Determine the amount owed against the property

This will be the total of all loans against the property.

4. Do the calculations

Subtract the total amount owing against the property from the estimated proceeds of the sale. On a short sale, this will be a negative number.

5. Contact the lender or lenders

Talk to someone in the customer service department and tell them the situation. They may direct you to a specific department. Talk to a supervisor or manager if possible; this person will have more authority.

6. Ask the lender what its procedures are for a short sale

Some lenders are willing to work with you by reducing the amount owed or making other arrangements. Others will look to the agents involved (if any) or anyone else who's making money from the transaction to see if they are willing to make concessions to make the transaction happen. Still other lenders will tell you that your debt is your responsibility, one way or the other.

7. Sell the property

Tips & Warnings

Closing costs will include title and escrow fees (if the seller is responsible for any portion of them, which will depend on your county), attorney fees, a portion of unpaid property taxes, re-conveyance fees, notary fees, delivery fees, documentary fees and/or transfer fees.

If you sell the property without the assistance of a real estate broker, you will save the amount of the commission and have more to apply toward paying off your loan.

If you feel more secure having a real estate broker handle the transaction, consider using a discount broker to market your property. You could also try to negotiate the sales commission with your broker.

Remember that the amount on your monthly loan statement does not include interest. Interest is accrued until the date a loan is paid off, so you may have as much as 30 days of interest on top of the balance owing, and you'll need to include this interest in the total payoff amount.

And, two more important points:

1. If a property is sold under a short sale, the lender may require the buyer to make up the difference, either through a personal obligation or a collection.

2. The IRS often gets involved with short sales, because they are seen as a relief of debt and may be treated as income. Check with your accountant.

Follow this step-by-step guide and you will be able to make a successful short sale on your real estate. If you need help, then contact a capable broker or real estate agent.

Specialized in: Miami Real Estate Agent - Buy Or Sell In Miami - Coconut Grove Specialist - Coral Gables Specialist - Condominiums - South Florida Condos - South Florida Real Estate Agent - Miami Condos - Cocoplum - Coral Gables - Pinecrest - Fisher Island - Aventura
URL: http://www.ibmiami.com
Print article      Bookmark this page
Related Articles 
Is It Better to Buy or Rent? (Popularity: ): The market is ripe for buyers right now. Interest rates, although slightly higher than this time last year, are still quite low. So naturally you should be telling your landlord goodbye and saying hello to your dream home, right? Not so fast. Certainly, owning your own home has its benefits. But, is the dream of home ownership really one you should pursue? It all depends on your circumstance and needs.Buying ...
Co-Buying - Unconventional, But A Great Solution (Popularity: ): It may not be an ideal solution, but for some the unconventional alternative of co-buying a property and sharing the cost, sometimes with a stranger, is the only solution currently available to get onto the property ladder. But it is essential to know the legal implications of entering in to such a deal. There should be no difference between buying with a stranger rather than buying with a friend, or ...
Government Grants For First-Time Home Buyers (Popularity: ): The American Dream Down Payment Act authorizes $200 million in grant aid for each of the coming four years to low-income, first-time homebuyers. It certainly is a dream come true for many people who have harbored the fantasy of buying a home but were not able to get the cash for it.It is a joint government and banking program to help people put together that initial down payment which is ...
Home Buying - What Can You Afford? (Popularity: ): Okay, you've decided to buy a home and are trying to figure out what you can afford. Before you go home buying, you need to carefully consider what you can afford as far as a mortgage payment. Mortgage Payments The first step you should take in determining what you can afford is to talk to a mortgage lender. In fact, the best step you can take is to go through ...
Home Buying - What Is That Noise!?! (Popularity: ): You've found the perfect home, closed escrow and just finished moving in. As you happily fall asleep, all seems well in the world. An hour later, you bolt up in bed to an ear splitting sound. All is no longer well in the world. An Unholy Racket If you saw the movie "My Cousin Vinny", you know what I'm talking about. For those that haven't, the movie centers on a ...

Related Business 
Short Sale Service (Popularity: ): Short Sale Service aims to provide short sale buying and selling assistance, both for homeowners and real estate investors. We are a team of real estate professionals with extensive experience in the field, and we put our knowledge to good use by offering various resources to help clients get the best deals. If you’re looking to buy or sell a short sale home, have a look around and see what ...
Professional’s Short Sale Marketing And Real Estate Marketing (Popularity: ): It is necessery to learn the skills of marketing in real estate or short sale as having a vast compition in the field. Lee honish is the professional deals with real estate marketing, short sale marketing, and what is a short sale.
Duncan Real Estate Services (Popularity: ): If you need Short Sale Negotiation and Transaction Coordinator for success in real estate professional than this is a one stop for all of your real estate professional needs. By our short sale services we will maximize both of our earning potentials as well as being able provide both buyer and seller with a seamless transaction.
Altius Directory (Popularity: ): Real estate, real estate agents, real estate listings, real estate foreclosures, commercial real estate, real estate mortgages, real estate companies, salary pay scales, insurance, real estate development, investors, property advisor, real estate marketing, real estate taxes, finance, real estate career, real estate brokers, trends, universities, real estate attorney, real estate schools and more.
Short Sale Coaching Programs (Popularity: ): Mr.3days is a site which gives coaching to people, for how to dominate the short sale market before time runs out. The key function of this company is to provide cutting edge real estate marketing materials useful for getting success in short sale investing business.
MN Short Sale Agents (Popularity: ): The Minnesota Short Sale Team is a group of accomplished real estate professionals that specialize in short sale transactions. Servicing all areas of Minnesota, our team consists of the most knowledgeable short sale experts in the industry. Leading the market for over 11 years, our agents have reached over $150 million in sales with over 1,000 transactions closed.
Sacramento Real Estate Attorney (Popularity: ): The Sacramento real estate attorneys at the Litchney Law Firm are experienced and caring. They have helped thousands of clients with their real estate needs including short sale, foreclosure and settlement.
Mexico Real Estate For Sale (Popularity: ): Mexico Real Estate Group is an online resource for finding safe Mexico real estate. Our Baja Real Estate Group, Mexico Real Estate Services website, your source for Mexico Real Estate for sale and Baja Real Estate. With property listings in cities like Rosarito, Ensenada, Los Cabos, Puerto Vallarta, Cancun and many more.
Real Estate Foreclosures (Popularity: ): Established in the year 2010, toRealEstates.com has been serving the audience typically related to Real Estate niche. You will find latest information on the hot real estate topics such as for sale by owner, foreclosed homes for sale, real estate news.
What is Short Sale? (Popularity: ): When you are facing possibility of losing your home, you need to trust a qualified short sale agent who can help you avoid home foreclosure. The experienced and knowledgeable short sale real estate agents at McGeough Lamacchia can help provide alternatives to home foreclosure, helping you keep a roof over your head.