I have had so many people ask me how to figure out this crazy real estate market. Sellers ask: Are any homes selling? Buyers ask: How can I cash in on the deals? The fact is price is going drive the sale.
Buyers are looking for deals and unless they perceive your home as a deal, they'll move on down the street and look for the next deal. Where does that leave you when you have to sell your home due to job loss or illness? What if you owe more than you can sell your house for?
If you have to sell your house for less than you owe, it stands to reason that you aren't going to have any money in your pocket from the sale. In a short sale, the bank has to agree to accept less than what you owe in order to get a buyer to make a solid offer. What we try to achieve here is to save your credit score as much as possible - save it before you get behind in your payments and your home goes into foreclosure. Foreclosure is a very expensive process for the bank. They would much rather accept less than what you owe in what we call a "short sale" than have your home go into foreclosure.
What do we do to get you and your buyer a short sale? First, banks will only deal with real estate brokers. They rarely work with distressed buyers trying to sell their home on their own - they don't know the process and emotions interfer with the transactions. Because of the lack of a profit, it just makes good sense for a homeowner to put the transaction,work and worry into the professional's hands and get the job done right. Your agent will market your home at a below market price to attract buyers. Once an offer is made, your agent will deal with the bank to get the offer accepted and get you out from under a mortgage you can't afford. There are buyers looking for these opportunities. Call me at 734-624-9985 or email me if you have a specific question on how short sales work.