A Short Sale Negotiation is a dialogue between two or more parties with the intention of reaching a beneficial outcome when a borrower is underwater on his or her mortgage and would like to avoid foreclosure. Many times we have clients say they want a short sale, but actually have equity in their property. We often explain their situation and then direct them to a real estate agent to work out a normal listing. We will work with the seller then if they need help with closing, or getting them more time to close if the bank is looking to foreclose on their property.
However, when a short sale is the only option as the client would like to avoid having a foreclosure on their record, the biggest problem with short sale negotiations is when the listing agent has no idea what they are doing. If the listing agent is incompetent and miss prices the home, the home is unlikely to find matching buyers or the price will be too low that a bank would rather take their chances with a Sheriff Sale that needs to be stopped. If the short sale does not stop a sheriff sale, bankruptcy may be needed to stop the foreclosure.
Take your time to find the right foreclosure team if you are looking to perform a short sale. We recommend First Look Realty for any sales whether they are regular or a short sale.
For more info on the pros and cons of a short sale.