Homeowners – As I have noted in some of my previous articles and videos, there is a huge myth going around out there that the worse your home looks, the bigger the discount your lender will allow on your short sale.
This is absolutely false and if you follow this practice, you are most likely going to go to foreclosure!
If you are attempting to short sell your home, here are a few things you need to keep in mind to not only help you out of a bad situation, but also help your real estate agent succeed.
- A valid hardship – Being upside down with your mortgage is NOT a valid hardship, it is a dissatisfied homeowner, Period! There are many valid hardships and I made a partial list in my article here: Do I have to be financially distressed to do a short sale?
- Your home must show well even if it needs repairs – If your home needs repairs, the home must still be clean!
Maybe you were part way through a remodel when you lost your job or your hardship started, this is not an excuse to leave the home in a dirty, dismal state so that it shows bad to potential buyers! If all the carpet is gone then make sure your agents notes that on the MLS but the home should look and smell clean. You might even consider throwing down some floor paint to make things look better.
- Your home must be easy to show – Not allowing as much access as possible to your home for showings is another recipe for disaster.
Remember one thing, it is not your lenders fault you are in this predicament. You signed the loan documents and promised to repay the loan.
If you attempted a loan modification and were denied, it is not because your lender does not like you, it is because you did not qualify for one.
A loan modification approval is all based on the numbers, period. You need to note one thing about loan modifications, of the few that are approved, over 60% of them go back into foreclsoure within 6 months.
Your lender knows this statistic.
Now is the time for you to step up to the plate and help your lender get as much money back from the short sale as possible. If you don’t your lender has every right to foreclose and damage your credit.
My suggestion, work as hard if not harder, to help your real estate agent with your short sale as you did to qualify for your home.
As always, please leave a comment or ask a quesiton below.
Related posts:
- My Book: The Real Estate Agent’s Guide To Using The Equator Short Sale Website – Now at Amazon
- Does my bank really want my house? Part #2 – Short Sales
- *VIDEO* Why Short Sales Fail – Part 1 – Dealing with the Seller – For Real Estate Agents
- Why did the BPO home valuation come in so high on my short sale?
- Do I have to be financially distressed to do a short sale?
Tags: foreclosure, hardships, loan documents, loan modification, modification approval, real estate agent, valid hardship
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