How to Short Sale Real Estate

Video Transcript

"You owe more than your home is worth. I'm Richard Blake in Clearwater Florida. I'm here to explain how you can short sale real estate. A real estate short sale involves the lender taking a lower purchase price than what your current mortgage is on the home. You're going to want to contact your lender and ask them if they'll consider doing a short sale. They're going to have you contact a local real estate agent and put the house on the market right away. A few items that you're going to want to submit to your lender are a hardship letter, your bank statements from the last six months and any items or outstanding debt that you currently have or currently accumulated over the last year. Generally they're going to want for you to be behind or delinquent in your mortgage for at least four months before they will consider a short sale. Anything prior to this point they may want to give you options to make some different payment options as far as decreasing your current monthly rate and adding it onto the back end. Several options there again contact your lender; they'll be able to discuss those. But, if you're past that point and those options are no longer available to you do consider a short sale. Contact your local real estate and ask them what the current market values are in the neighborhood. This will give you a good starting point of where to price your home. Then at that point in time you may want to consider doing a monthly price reduction to increase more traffic and more desirability to your home in order to get it sold in a quicker amount of; or a faster amount of time. I'm Richard Blake. I hope that helps you a little bit and gives you some ideas on a short sale. You guys have a great day."