Have you heard what a short sale is?

When we talk about a short sale, we refer to selling your property for less than what you owe on your mortgage. This type of sale is carried out when the owner needs to settle their mortgage debt. However, you must meet certain requirements to qualify for this type of sale, which are:

1. Your debt must be greater than the value of the property.
2. Have at least one missed mortgage payment.
3. You must certify that you are unable to make the payments.

Now, if you want to buy a house under these conditions, it is first necessary to locate a homeowner willing to sell under these conditions before approaching the bank. It is also important to explain to the homeowner three things:

• This type of sale is one of the best solutions for settling debts.
• There is the possibility of negotiating with the bank to accept a lower amount as full payment for the property.
• They must fully agree to this type of sale, as the bank will request personal information from them.

On the other hand, it is necessary to discuss two points of utmost importance with the homeowners before presenting the proposal to the bank:

• Establish an amount to cover moving expenses: This point is important because the seller will not receive money from the sale. Therefore, it is necessary to provide the homeowner with the money needed to cover moving expenses.
• Establish a specific date for the homeowner to vacate the property.

You must also consider that it is necessary to achieve two objectives for the negotiation with the bank to be successful:

• Present a convincing case to the bank as to why a short sale should be carried out. And make it clear why this decision is beneficial for the bank.
• Build a good reputation and relationship with the banking industry.

This article is for informational and educational purposes only. Therefore, it is important that before making any decisions, you visit or contact a certified specialist in the field, as the opinion of the expert should be considered.

Meghan & Noe

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