Are you in a situation where you must sell your home but you owe more than it is worth? Many homeowners have found themselves in this position. The good news is, you can sell.

Selling your home when you owe more than it is worth is possible with the participation of your mortgage holder.

In order to qualify you must be ready to provide the mortgage holder with your financial information. This would include the following:

  • Two years tax returns
  • Two months of your most recent bank statements
  • Two of your most recent pay stubs
  • A letter stating your hardship, I.e. why you cannot afford to sell your house and why you must move.
  • Sold comparables indicating what your home is currently worth (this is usually something a real estate broker like myself can do)
  • A listing contract
  • Copy of the MLS sheet showing your home has been on the market for sale
  • A contract with a buyer who knows you a planning to sell the home short

Since the mortgage company will not approve a short sale until you have a buyer, you will need to put the home on the market first and find a buyer. The good news here in the Denver market is due to an inventory shortage there are plenty of buyers who are willing to purchase your home.

The bad news is nothing about a short sale is short. The time it takes to process a short sale is uncertain. While many banks have improved their process, the is no guarantee you can:

  1. Get a short sale
  2. Or get acceptance of a short sale before the buyers get bored with waiting and move on

Many short sellers will see a series of buyers get in line to purchase their property only to have the 3rd or 4th buyer actually purchase it.

If you are thinking about selling your home and think you will need to short sell it, give me a call. I am not an attorney so I don't give legal advice, but I can discuss with your your options so you can make an informed decision.