5 Tips for Sellers on Short Sale Arrangements

If you are one of the many Americans trying to negotiate a short sale with the bank, you are undoubtedly facing some uncharted territory. In such a stressful time, it is easy to trust the first person giving you advice. However, at this time it is really important that you are careful of whom you take advice from, in order to protect your financial well- being and your credit as well.

When going through the process of being approved for a short sale, there are several things that you can do to keep yourself organized. Hopefully the tips below will help you to keep an accurate record so that you do not lose valuable information that you will need later on in the process.

Here are some helpful tips when you’re going through the short sale process.

1. Get everything in writing. This goes for anything that you think may come up in court or anything that you believe you will need to prove at a later date in time. If you are speaking with the lender on the phone, do not assume that they are your friend. They are there to get as much money as they can for the bank. Therefore, it is important that you ask to have information documented in writing. If the lender says that you are released of the debt, ask for a formally signed letter from them stating that your debt is forgiven.

2. Ask how your bank reports the deficiency – You should ask how your bank reports the deficiency to the credit reporting agencies. A Short Sale could show up on your credit report in several different ways, and you want to be aware of how this statement will reflect on your credit report following the short sale.

3. Keep accurate contact information – You should have a file of all of the contact information including the bank/lender information, the loss mitigation department contact who is handling your case, the Real Estate Agent, your attorney handling the Short Sale, and any other contacts who have been involved with your Short Sale.

4. Keep a Chronological File – This file should include events that have transpired since you first went into delinquency. You can keep documents in this file such as the home’s appraised value, documents of your late payments, and any letters that have been sent to you from your mortgage company.

5. Keep a Record of Phone Conversations – Keep a notebook handy by your phone and when you speak with one of the agents, be sure to write an accurate account of what was said so that you can refer to it later. Be sure that you date your conversation memo and file your information for future use. It is much better to have a written record of documented conversations rather than trying to go off of your memory.

Although going through the short sale process can be very nerve-racking at first, if you follow the guidelines above, you can help to alleviate some of the initial worry by becoming more organized and keeping accurate records for future use.