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August 31st, 2010 1:36 PM by David W. Welch
What does it take to have success in a short sale? The lawyers advertising on television would tell you that you need a lawyer. Frankly, I recommend the counsel of an attorney to every short seller. Having a lawyer does not insure success. There are many agents in our market who specialize in short sales, and they would tell you that you need to work with them to be successful. You do need a competent agent with experience in short sales to help you, but that does not guarantee a successful closing either. Unfortunately, there is no silver bullet or magic potion that can guarantee success for your short sale. However, there are two things that can greatly improve your chances at closing your short sale.
The first requirement of a successful short sale is a motivated seller. If you are really determined to make the short sale work and at least provide all the documentation required by your lender, your odds improve. If you take an active role in working through the approval process your odds go up even more. Even though you are pursuing a short sale, you also must offer a home that is a good value. It is not enough to have a lower price. The value to the buyer must make your home worth waiting for. The short sale process will take months, and your buyer must continue to feel like they are getting a good value or they will not wait. That brings me to the second requirement to improve your odds of closing your short sale.
You need to find a buyer that is as determined as you are to close the deal. There are other homes for sale, and sometimes the short sale buyer is unwilling to extend contracts or negotiate with your lender on price. The best case is when you find a buyer that loves your home, and can see the value in your property. If they truly love your home and feel like they are getting a great value, they are more likely to stick it out when your bank drags their feet to give you an answer. Unfortunately, your lender the mortgage insurance company and the investor that owns your loan are the key to approval. If any one of them is unwilling to approve the deal, it does not make any difference how motivated the seller and buyer are. With a determined seller and buyer and a bank willing to work with you, the chances of success are greatly improved.
David Welch Real Estate Optimist, Orlando Real Estate