Negotiating Short Sale

Negotiation a short sale is an essential step in the price, one which should definitely not be disregarded. In a short sale, the lender has agreed to accept a lower amount that that which is owed on the loan. However, this does not mean that the homeowner should sell low. Most likely, if you have requested a short sale, your lender has already assessed your home, and thus are aware of what should be a reasonable price. Though a lender is willing to assist you by providing a short sale, they are not willing to lose any money that could possibly come to them. As is standard in a short sale, the lender will accept a rate lower than the home's actual worth, but not at a substantial loss. So unless negotiation is handled well, it is possible that your rate of short sale may be too low for the lender to accept.

Fast Facts

  • Short sales are currently going for around 95 percent of their appraised value, according to a study.
  • A seller might be forced to cancel a short sale, even after negotiation, if the buyers offer does not make the lenders approval

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