Short Sale Listing
Are you thinking about doing a short sale? If yes, then first you need to list that as a short sale and hire the short sale listing agent. People are always trying to time the real estate market, and it really can’t be done. You need to be strategic when listing a short sale. Listing a home just few days are weeks ago before the sheriff’s sale auction or trustee’s auction is the worst time to list the home as a short sale. There are too many things that can go wrong in a short sale so you should want to be as far away from that date as possible.
Basic Steps of a Short Sale
- First, you need to find a committed buyer.
- Your agent will send the accepted offer and all paperwork to the bank.
- The bank will screw around for a few months, ask for more paperwork, lose stuff, and demand revisions, in general, make your life a living hell as the bank’s collection department continues to hound you.
- Finally, somewhere between 2 to 4 months, on average, you will receive a short sale approval letter from the bank.
- Elated, your agent will notify the buyer, who will have canceled without telling anybody.
- You start the short sale over.
The short sale is the really stressful and complicated process so doesn’t dare to deal with it without hiring a short sale agent. Deal by yourself with a short sale is making your life hell by your own hands.
The Best Time to List a Short Sale
The majority of the short sale homes don’t get the enough offers and are not priced well due to no or low completion. Marketing your home as a short sale is the best way to get the multiple offers. You are supposed to market your home properly, receive offers and select the best offer to present the bank. You should select a buyer who can wait for the approval of short sale. Sometimes buyers write offers just to see which offer is accepted first by a short sale bank and that buyer might not be dedicated to buying your home. Not every real estate agent is an honest agent, and an agent might not disclose if the buyer is writing multiple offers.
The ideal time to list a short sale is the time that you can get the buying offer before a few weeks to the official thirty days behind the mark. For example, if your mortgage payment is due on June 1st, it will be 30-days delinquent on July 1st. Therefore, July 1 might be the target date for your bank to review the short sale. If the bank takes 10 days to process the paperwork prior to review, you will want the offer to arrive at the bank around June 18th.
The majority of the banks takes ten days to two weeks to get the documentation together and assign a short sale negotiator to analyze and read the file. From this point it can take few more weak or even months to get the short sale approval. Some banks process short sale faster and some slower.
The perfect time to think about listing a home as a short sale is before you go into default. You should talk to you listing agent about your bank’s guidelines. You don’t need to be in default to do a short sale. But if you must in default, then put that home on the market as fast as can you can. Do not wait for a good time. When you’re in default, there’s no such thing as a good time to list a short sale. Just do it.