Thursday, September 24, 2009

How to Manage a Short Sale

Short sales have become a sign of the times. In some markets, like Sacramento, 50% or more of sales are short sales.

By definition, selling short is when a home is sold for less than is owed, requiring the bank or mortgage holder to agree to take less than the value their debt. That banks don't enjoy doing this is quite an understatement.

Like everything in Real Estate it pays to be informed, so when we saw that our old friend Robert Irwin had written a new book on short selling a home we knew it was a "must read' for any short seller, coming as it does from the leading expert on selling by owner.

How to Use a Short Sale to Stop Home Foreclosure and Protect Your Finances

- is a comprehensive guide to short selling for the home owners.

“I wrote this book to show sellers, buyers, and their agents how to successfully get lenders to deal when a property is ‘upside-down'” says Bob.

If you’re “underwater” you’ll find this book is a life preserver. It shows you step-by-step how to get out from under by selling your home and having your lender accept less than you owe.

It gives multiple examples of what goe
s into a “short sale package” including “seller’s hardship letters,” “lender’s net sheet,” and “a proposal letter.” It explains how to find an appropriate buyer and work with an agent (if you so desire), and details what the tax consequences might be. It gives lenders’ phone numbers and has many easy-to-use worksheets. It even shows you how to do a successful loan modification. It’s offers everything you need to pull off your own short sale.

If you’re an investor/buyer, the book explains the seller’s perspective, shows you how to work with sellers and lenders, and explains what you’ll need to accomplish a short sale. It shows how to get through to a lender and what to say to avoid delays.

You shouldn’t consider buying or selling a short sale property until you’ve checked out the rules, pitfalls, and shortcuts in this book.