How to Do a Short Sale?

A short sale in real estate occurs when the outstanding obligations against the property are greater than what the property can be sold.

How to do a short sale?

1. Verify the value of the property.  If you are selling the property through a real estate broker, your broker will provide you with an estimate of market ones.
2. Add up all the costs of selling a property as a short sale.  If you are using a broker, they will perform an estimate of the closing costs.  If you are selling the property on your own, call a local title company or real estate attorney and ask, as a seller, what the closing costs will be.
3. Determine the amount owed against the property.
4. Do the calculations.  Subtract the total amount owed against the property from the estimated proceeds of the sale.  Since it is a short sale…it will be a negative amount.
5. Contact the lender(s).  Talk to someone in the customer service department and tell them your situation.  They will direct you to a specific department.  Talk to a supervisor or manager if possible.
6. Ask the lender what is the procedure for a short sale.  Some lenders may work out a loan modification or will send you a short sale packet.
7. Sell the property.