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There are good reasons for a homeowner to attempt a short sale, and, in my opinion, good reasons for the banks to work with homeowners in this process. For the homeowner, if the short sale is negotiated, your loan is satisfied and the pressure of making a payment that has become a burden is relieved. Although a short sale will affect your credit score negatively, it will not have as much negative impact as a foreclosure. You can start the process of rebuilding your credit immediately without having the negative impact of a foreclosure on your record for seven years. In some cases, you can even negotiate with the bank as to how the short sale is reported to the credit companies.

 

For the banks, it makes sense as well. The foreclosure process costs the banks tens of thousands of dollars. Even after a foreclosure is completed the bank is usually still saddled with an asset that is worth far less than the original loan. If they can circumvent this process by working with the homeowner to sell the property, even for a lower price than the loan amount, the bank loses less.

 

If you are considering making an offer on a short sale property be advised to seek out a realtor that has experience in this field of selling. Not all agents are comfortable working with banks, nor do they understand the process well. Your agent must be diligent and persistent. They must be willing to check with the banks on a daily basis and approach the process with patience.

 

Banks are not personally attached to the property, therefore, each of these homes are just a file with a number! Unless you have an experienced agent representing your interests, and being the “squeaky wheel” on your behalf, it is likely that your offer will just be dropped in the pile behind everyone else! The short sale process is lengthy, time consuming and frustrating. A great agent will take the frustrating part away from you and make it their own. They will continually remind you that the process is worth it because you are getting a great home for a great price!

 

Short sales are a reality of our market today. Make sure you are working with an agent who understands the process and can guide you through it successfully.