Oakland County MI Home Seller- The Short Sale is Subject to YOUR Approval Too
When you sell your home via short sale in Oakland County MI or Lapeer County MI one of the contingencies in both your listing agreement and purchase agreement will be (should be) “subject to seller and lien holder approval of short sale.”
The bank or banks can approve the short sale, but if you aren’t happy with the terms under which the bank approved the short sale, you don’t have to close. Sometimes foreclosure is a better alternative than a short sale. To be fair to both your agent and potential buyer, you should discuss the alternatives with you agent, an attorney familiar with bankruptcy, and your accountant if you have one, prior to listing your house. Once you make that informed decision to list, you need to be prepared for what may happen. Some basics you should know about short sale:
You’re not just walking away from the deficiency without consequences unless it is negotiated with the bank or banks
- You may have to bring money to the closing or sign a note for a portion of the deficiency in order to get the lien holder(s) to release you from liability for any deficiency
- In Michigan the bank(s) has up to 10 years to come after you for the deficiency if it isn’t taken care of when you sell
- If the house is sold at sheriff’s sale for the same or more than you owe there is no deficiency to hold you liable for (providing you have only 1 mortgage)
My job as a listing agent, when representing a short sale seller, is to price the home in a manner to obtain an qualified buyer at a price and terms the bank(s) holding your note will take. It is also my job to negotiate terms that are acceptable to you the seller- mainly dealing with the deficiency so you don’t get sued later. Sometimes the banks will just release you of responsibility because of my sunny personality! Sometimes they will want you to bring money to the closing. Sometimes they will want you to sign a note. Sometimes they may require money and a note.
When we meet the first time, I need you to be totally forth coming. I will not judge you. I need to know the reasons you’re selling, your debts, your income, I’ll take a DNA swab- not really regarding the DNA but you get the idea. I need you to be totally honest. And I will be honest with you. I will let you know what I think you should expect. I will discuss various negotiating techniques I have found to be quite successful in bringing the short sale to a conclusion that is favorable to everybody. And I will tell you if I think you would be better off meeting with a bankruptcy attorney. Bankruptcy is NOT a dirty word! Foreclosure is NOT a dirty word!
This is the second in a series of posts about selling a short sale listing. I will be writing posts in the near future that will discuss negotiating techniques, pricing strategies, what to look for in a buyer, and post on when foreclosure may be the best option for you.
Please don’t hesitate to contact me with any questions about selling your North Oakland County or Lapeer County MI home.
Keller Williams Realty