Benefits, immediate action for the homeowner.
As a homeowner you should accomplish the following from the onset:
Assess the value of your home. Get an estimate from your selling
agent. If you’re selling your home yourself, do a thorough analysis of
your neighborhood and surrounding area. Don’t us last year’s prices for
Determine all the liens on your property. This would include first,
second mortgages, delinquent taxes, special assessments or mechanics
liens; anything that will have to be removed from title in a closing.
Understand the costs of selling your home. Your agent should
provide you with an estimate of closing costs. You can use a third party
(title company, fsbo service or attorney) if you are selling your
home on your own.
Finalize your figures. Add up the total amount of liens, obligations
and costs against
the your home. In sum against the proceeds of a sale, you should end up
with a negative number, hence a short sale.
Speak with your lender, regularly. Speak to customer
service to locate the loss mitigation department. Make professional
contact and give a brief summary of your situation. Talk to the
supervisor or manager of the loss mitigation department; this person will
have more accurate information.
Understand what your lender wants and their procedures for a short sale.
lenders may have alternatives and may be willing to work with you by
modifying your loan or pursuing other alternatives. It’s extremely
important to find out what their position up front in order to increase the
likelihood that the short sale will occur.
Don't delay. In a foreclosure, the clock is ticking. Know your
timelines and stick to them. Communicate any delays to your lender and
all parties involved.