Like any other financial deal, a short sale also should be done very carefully. Moreover, it will need a high level of patience from all parties involved in the process. In a short sale deal, one of the biggest challenges one will face is the negotiation with the lender/bank.
A short sale negotiation needs to involve both a real estate agent and negotiation specialist. A specialist is often someone from a legal firm or other third party loss mitigation company.
The reason for this negotiator is that banks are often difficult to deal with. Some people might choose to deal directly with the bank themselves, but in a process as complicated as a short sale, it’s best to enlist professional help.
If you do try to work directly with the bank on your own, be sure to always remain calm and confident. It’s very easy to get frustrated. Banks are very good at telling you no.
One of the most important parts of the short sale negotiation is the package you and your loss mitigation specialist put together for the bank.
Make sure the package includes all the materials the bank has requested. This often includes a hardship letter from the homeowner or owners, estimated value of the property, estimates for any needed repairs of the property, homeowner’s income tax return documents and a borrower’s offer price for selling the property.
After verifying all the documents, the most time consuming part is negotiating the price for the home to be sold. The bank will obviously look for more profit and may not always agree to the price offered by the borrower. This is a critical part for you to have representation. Banks deal with individual homeowners differently and try to get as much out of them as possible. A negotiator is going to have a better idea of what is really possible and should be able to get a fair agreement just about every time.
Short sales are a lengthy process and the negotiation can drive you positively crazy. Let someone else handle it and keep your stress to a minimum.
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