or 2) that you are subject to a mandatory job relocation. The lender will analyze income and assets. If the debt-to- income ratio has risen, it will help your short sale approval. If you have money saved, it will be required that you contribute these funds to minimize the bank’s loss. A market analysis is required—along with information on liens on your property. • List the property. Once the short sale is approved, the property can be listed with a real estate agent. According to Zillow.com, offers will have to be presented to the lender for approval. This process can take two weeks to several months. If you have a second mortgage, both lenders must approve each other’s terms, which makes the process longer. • Lenders approve the sale of the property. The lender(s) will review the buyer’s offer and decide whether they will approve the sale. Once approved by the lenders, the short sale can close as soon as the buyer can get their loan approved, funded, and closed. Another item to consider before opting for a short sale is the fact that short sales are highly sensitive to liens placed on the property, due to how much these liens complicate the selling process. Keep in mind that buyers avoid properties with liens. For the final sale to go through and close, the lien needs to be taken off and the property title cleared. If, by any chance, the owner manages to find a buyer willing to buy the property with the lien, the value of the lien is always reduced from the final selling price of the property.
While a short sale might seem like a tempting option, it’s one
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