1. Make sure you have a hardship. In the current economy, some sellers want to sell their home simply because it has lost value and do not want to pay off the mortgage any longer. They hide their finances and expect the bank to forgive the debt. Short sales are for the deeply financially stun, who no longer can pay off the mortgage for an extended period of time.
2. Try to remain in your home. A well-maintained home with luscious green grass and clean carpeting is much more attractive than a home that has been abandoned for months. The nicer the home, the more willing buyers will be to wait for lender approval.
3. The same etiquette should be used in a short sale as a regular sale. Short Sales are not REOs, there is still a face behind the home, and that is what draws buyers to Short Sales. REO homes are often left in its skeleton state: no heaters, no stove, nothing but the foundation. A well-received short sale home looks just like a regular sale home: clean and inviting
4. Be ready to wait. Especially in the current economy, short sale homes may not move for several months. You have to be prepared to wait.
5. Seller’s Costs: None. Once approved, it is now the bank’s responsibility for all closing costs (agent’s commissions, escrow fees, title fees, etc.) Any items written in the contract as “seller must pay…” is transferred to the bank.
6. All regular fixtures that stay after closing in a normal sale should remain in the short sale home as well. This includes, but is not limited to: A. Curtains B. Light fixtures C. Stovetops, built-in microwaves D. Anything permanently affixed to the walls or floors
7. After approval, the lenders allows a maximum 30 day escrow, average 20 days. You do not know when the lenders are going to approve the short sale, it could be weeks or months. BE READY! The lender does not give much leeway to sellers on the closing date because, although the lender has a slow approval process, they want to get rid of their bad investment as soon as possible. They definitely will not allow an extension if it is because the seller didn’t move out in time or find living arrangements prior. Imagine the savings you have already accomplished: 1. No closing cost fees 2. No commission fees 3. Much better outlook on your credit report 4. Possibility for no deficiency Do not wait! I have had short sale clients foreclosed on because the bank was not happy with the seller's requests. Prolonging your stay in your home for a couple extra days is not worth a foreclosure after months of working on a short sale.