If you are behind on your mortgage payments and your house needs significant repairs, you may be concerned that the bank will not agree to a short sale and will instead move forward with a foreclosure. The good news is that regardless of the condition of your home, you can do a short sale.
If the foundation has failed, the roof is leaking, and the plumbing is not working right, you can still do a short sale. Likewise, you don’t need to worry about cosmetic issues, like peeling wallpaper and outdated light fixtures. Whether the damage to your home is minimal or extensive, do not spend any time or money on repairs, since you will not recoup any of your investment when you sell the house in a short sale. No matter what your house looks like, an experienced short sale realtor will find a qualified buyer and negotiate a short sale with the bank at a fair value. In many cases, it’s actually easier to find a buyer for a house that is in severe distress than a pretty house, because investors are always out there looking for good deals.
As an example, last February we received a call from a woman in South Dallas wanting to sell her home. It was an 80-year-old house and in serious disrepair – so serious, in fact, that the back of the house had literally fallen off. When you opened the bedroom door, you saw the backyard. The elderly woman who lived there could no longer afford her heating bill because she was heating the entire outdoors, and she had to get out of the house. It was unlivable. Despite the abysmal condition of the property, we sold the house very quickly – albeit at a very low price – because an investor wanted it.
If you are behind on your mortgage and considering a short sale, you can feel confident that your house will sell, no matter what condition it is in. The average person won’t have a house that is falling down, but maybe your house is worn and could use some minor repairs. You should not spend big bucks on renovations, but you do want to ensure that the house looks as nice as possible to help move along the sales process. If you have paint in the garage, touch up the walls. Don’t buy paint, but use what you have. If the carpets are stained, don’t pay to have them cleaned, but do pick up some stain remover at the store and see whether you can get rid of any spots yourself. Clean the counters, get rid of clutter, vacuum the floors, and make your house as presentable as possible. The nicer it looks, the faster your realtor can find a buyer for the short sale.
Last but not least, allow the showings of your home as often as you can. Blocking showings will hinder your chance of finding a buyer quickly and thus jeopardize the progress of the short sale.
If you have any questions about what kind of repairs you should make or whether you qualify for a short sale, please give us a call.