This is part 4 in the series: 40 Questions You Need to Ask When Considering a Short Sale
Questions for the Home Owner: Is a Short Sale Realistic?
It’s easy to forget about the home owners in a short sale transaction. It’s also easy to forget, the home owners have to keep their end of the deal up as well or it all falls apart. Here are some of the questions your agent should be asking the listing agent.
5 Questions for Home Owners
- Are the owners planning on staying current on their mortgage?
- Are the owners able to prove financial hardship?
- Is there a possibility the home owners could get a divorce?
- Are the home owners willing to maintain the home?
- Are the home owners able/willing to make repairs if necessary?
Reality Check Points
- For the most part home owners have to stay current on their mortgage payments in order to complete the short sale. Otherwise the home could go to foreclosure before the banks are able to approve the short sale.
- Every seller has to prove to the banks they truly cannot afford the home before they get an approval.
- In the event the owners get a divorce and won’t agree to sell the home via a short sale, the deal falls apart (it happens).
- Nothing is worse than seeing a home and three months later doing the home inspection only find out the owners have trashed it because they are trying to punish the banks.
- Its not likely the home owners will make any repairs to the home, but its good to know upfront.
On average there are 28-30 people involved with getting a short sale approved. The home owners may only be 2 people, but they are key to getting the deal done. By the way, it never hurts to become friends with the current owners. They will feel a lot better about selling their home if they know it is going to a friendly family.
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