About 9 percent of foreclosures alternatives offered in July by lenders, were reported as short sales. Short sales are financial tactics that appear only in real estate downturns, and are considered win-wins for sellers to get out of tight spots.
Although, foreclosures can be a minefield due to the frustration in the process. Banks have been hesitant in this real estate market as this is new financial landscape, usually due to global investors they answer to. Many real estate agents avoid short sales due to the long timeline, sometimes reaching 60 to 90 days.
If more homes would finalize as short sales, price stabilization would happen more quickly. Unfortunately, banks are inundated in short sale requests, so it’s very important to send in complete short sale packets to your lender. If a incomplete application is sent, it goes to the bottom of the pile.
What to do to make a short sale successful? The first thing to do is contact your servicer and let them know you intent on selling. If you let the lender(s) know early, they can get things ready to go and make a decision quickly. Sometimes people submit the entire package with the first offer and it’s incomplete – so it’s important to get everything completed right the first time.