How to Sell Your Short Sale for Free

Sellers do not need to pay fees in a short sale.

In real estate, the seller is responsible for paying real estate commissions and other closing costs. For distressed homeowners on the verge of foreclosure, however, the little equity in a home, coupled with being cash strapped, means this is not a reality. For these homeowners, a short sale is the best option. This allows the seller to sell the house, avoid foreclosure and the lender is responsible for all of the real estate commissions and fees.

Instructions

1. Contact the local real estate board in your area. Ask for a list of agents with a short sale specialist designation. These agents are best suited to handle your transaction.

2. Interview three short sale specialist agents. Once you have found an agent that can meet your needs, it is time to initiate the short sale process. The agent will have you sign a listing agreement, in addition to a letter authorizing the agent to speak to your lender on your behalf in negotiating a short sale. Once the agreement is signed, your work is nearly done.

3. Follow up with your lender after visiting with the agent. Make sure that the lender has your authorization to speak with the agent regarding the transaction. Your agent will take care of the paperwork and photos required by the bank to obtain a short sale approval from the lender. While the agent is diligently finding a buyer for the short sale, all negotiations and fees are taken care of by the lender. Once the house sells, you are required to sign off on the sale and move out, but will not pay any fees surrounding the real estate transaction; thus, selling your home short sale, for free.

References

• Investopedia: Short Sell Your Home To Avoid Foreclosure
• Bloomberg Businessweek: The new exit strategy: A short sale