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Working for Short Sale Approval05 Aug

Are you up-side-down on your house and don’t know what to do?  Short sales are often a good way to go.  They help you avoid foreclosure and save the bank money as well.  We liked this article about getting short sale approval.  It briefly explains that process and how to get this pushed through the lender or bank.  It is always a good idea to have an experienced real estate agent on your side to help you through the process, but this article is a good education piece.

Working to Obtain a Short Sale Approval

By Randolph Rempe

Working to obtain a short sale approval will depend on a number of factors, though chances are better these days of getting one than in the past. This is mainly because there are a lot of mortgage holders such as banks and credit unions who are sitting on millions of dollars of housing inventory that have been previously foreclosed upon and they generally don’t want even more.

For those not completely up on the terminology, a short sale is a method whereby a homeowner, who owes more on the mortgage than his home is now worth, can put the house on the market with the expectation of setting the sale price low enough to attract a ready, willing and able buyer in a relatively short amount of time.

Many times, short sale homes are priced at well below what is owed, and a bank or credit union or the like will allow it in order to ensure they at least get something rather than almost nothing, which is what would occur if the home were to be foreclosed upon. It’s always wise to remember that the financial institution holding the mortgage must agree to a short sale, though, before the home can be put up for sale.

If considering a short sale as a way to avoid the much harsher foreclosure route – and preserve a better credit history than would be the case with foreclosure – it’ll be necessary to convince the bank that such a transaction would be in its best interest. As was said in the opening paragraph, many banks realize this almost without having to be told, these days.

In order to make the best case, it’s smart to obtain a new appraisal of the home, which will have to be paid for up front, generally. Depending on the region of the country, and the size of the property, appraisals can run several hundred dollars. Expect from 200 to 400 dollars as the norm. The appraiser will look at similar properties in the area – along with other factors – and come back with an estimate of worth of the home.

With the new appraisal in hand, contact the bank and ask to speak with the manager or person in charge who services current mortgages and explain the situation, along with the request to conduct a short sale. Depending on circumstances, approval may come back quite quickly or it may take some convincing. If a bank has a lot of foreclosed homes already in its inventory, there should be little resistance.

Sometimes, it can be a little difficult to actually contact the department that has responsibility for the mortgage and the contact number may be for a business that just services the instrument but doesn’t actually hold the mortgage itself. Be persistent and polite, though, and work through the maze until the right people are spoken to and short sale approval is obtained.

In these economically trying times, many people are just throwing up their hands and “walking away” from their mortgages, but this may not be the smartest thing to do, especially if maintaining a chance to get another mortgage down the road is important. That’s why a short sale that results in a speedy transaction may be the way to go.

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