With so many homes worth less than the balance of the loan, many more people are turning to short sales.
A short sale is when your lender agrees to let you sell your house at a loss rather than let the home go into foreclosure. But it’s no slam-dunk.
Sara Williams and her husband are trying to sell their Whatcom County condo through a short sale.
“There’s a lot of paperwork, a lot of information they want. It’s a very slow moving process.” said Williams.
After months on the market, they finally got an offer. But that was in December — nearly three months ago. They’re still waiting to hear from their lender.
“They’re going to lose some money, so I don’t think that they’re in a hurry to hurry up and lose money.” Williams said.
In order to do a short sale, the market value of the home must have dropped. You must be near default on your mortgage and you have to have a verified hardship.
Because of a job loss, Williams and her husband qualify, but they’re learning it’s ultimately up to your lender.
Your lender must agree to let you sell at a loss. You have to find a buyer who’ll make a serious offer, then the lender must accept that offer and sometimes, they don’t.
Williams say if you commit to a short sale, be prepared to wait. Some short sales can take as long as six months.
And do your homework. Work with qualified professionals who know what they’re doing.
Realtor’s say even though you need your lender’s approval, you don’t have to wait for the lender’s OK before you accept a short sale offer.
