Short Seller’s Top 5 Do’s
1. Understand your rights.
In addition to an agent, consider working with a real estate lawyer to understand the law for short sales in San Jose. There are some region-specific laws that can help or hinder your short sale process, so it’s best to be made aware of them upfront. In some cases, a short sale can even be initiated minutes before your home is up for a foreclosure auction. A real estate lawyer working in tandem with your real estate agent can help you identify your options and execute them effectively.
2. Understand your bank’s procedures.
A bank will usually agree to a short sale when it results in a smaller financial loss than a foreclosure, but make sure that you’re aware of the necessary paperwork, deadlines, and procedures needed to go through with a San Jose short sale. If you are facing financial hardship and need to short sell to avoid foreclosure, any delay in paperwork can eliminate your chance to hold off foreclosure.
3. Work with an agent experienced in short sales.
There’s a lot of work involved in making sure all parties in a short sale —the buyer, seller, and bank—are on the same page and are progressing through the transaction. A solid real estate agent with short sales experience can be an effective liaison between all three, especially if the agent can anticipate what is necessary to make a short sale successful.
4. Speak with a tax advisor.
Homes and taxes usually go hand in hand, so speak with a tax advisor before you decide to short sell. Many San Jose short sale sellers don’t realize that debt forgiveness can be taxable, so find out everything you may be held accountable for before starting the paperwork to ensure that you are making the best decision.
5. Consult a non-profit credit counselor to understand your options.
HUD-certified credit counselors can be instrumental in helping you understand your options. Non-profit credit counselors are different from debt consolidators, so beware of companies claiming to educate you and consolidate your various debts into one low payment. Credit counselors are strictly for helping you plan your budget, show you options, and avoid future financial hardships.