Short Sale Process
Ask Kate for help with short sale process: Hi Kate, My husband lost his job in January. We have never missed a mortgage payment and have outstanding credit.
We have moved out of state and are currently renting. Before we left, we obtained a Realtor.
She has a buyer for the house who will pay with cash. But it needs to be a short sale because home values in Florida have dropped so much.
The Real Estate company is using an attorney to do the short sale. The buyer has now walked away because it is taking so long. And didn't want to continue paying rent.
What should my role be in this transaction? Should I be the one negotiating with the bank? I don't know what would take so long for a Cash transaction or doesn't it really matter? I don't want to ruin our credit, but I can't continue paying both rents out of state and the mortgage. Please HELP.
Kate Answers: Short Sale Process
Dear Jay, The speed (or lack thereof) in the short sale process is mind boggling.
But back to the cash buyer. Have you asked your Realtor to define cash? I am wondering if your home buyer had all of their cash in hand. Here's why.
I have seen times all cash buyers actually getting their "cash" from a line of credit that didn't pan out. Or from a relative who changed their mind at the last minute.
Where's The Cash
So first of all in a short sale process with an all cash buyer, ask if the buyer has 100 percent available cash ready to be withdrawn from its account TODAY!
Credit - Credit - Credit
Secondly, be aware your credit rating will not walk away unscathed from the short sale process. I'm not claiming short sales aren't worthwhile. But be realistic and prepare to take steps afterward to repair it.
Start here at Fixing Bad Credit
and How To Fix Your Credit Score
, a couple of my articles from my credit series.
Watch Dog Over The Short Sale Process
Thirdly, your role is to be the Watch Dog. A short sale process is no different from other real estate transactions. You are the home owner and care the most. It's your home, your pocket book and your credit history being affected.
So set a reminder on your phone or calender to make phone calls. You'll find more help for this at Ten Best Kept Secrets To Low Mortgage Payments
. Although you aren't refinancing, you'll see the same principles for a timely transaction apply to a short sale process also. The squeaky wheel gets the grease!
You Are Not Alone
If it's any comfort, remember you are not alone in the short sale process. For example, here is a letter, Real Estate Short Sale
, from a Veteran who lost his job and asks me if he should start packing his belongings to leave home. Loan Modification And More
is full of questions from homeowners in the middle of loan modification, short sale, strategic default, Home Affordable Refinance Program (HARP), Home Affordable Modification Program (HAMP) and Open Access transactions. I have answered each of these questions.
Best wishes for selling your house in Florida,
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