I don't know how many times I hear this question when I go to a listing appointment. So I thought I'd answer it in case there are some of you that would like to know what the difference is.
A short-sale is when you owe more than what the house is worth. For example, you bought your house at $500,000 two years ago and now it's worth only $400,000, the bank is now "short" $100,000 plus commission, fees, etc. A quick-sale, is when your home has equity and you price it well to sell fast.
I know everyone's been talking a lot about short sales lately. How does it really work? When you decide to list your home and it is "short", you would need to have your realtor (highly recommended) contact the bank to start the short sale process. Every bank is different and they have their own procedures and paperwork they require, but generally they would ask for your most recent bank statements, paycheck stub, hardship letter, and financial statement (expenses and income).
About 6-8 months ago, it took me over 6 months to get an approval on a short-sale, but now it's taking between 3-4 months. If you're a buyer, short-sales would work for you if you have time to wait and if you're a seller, short-sales are better on your credit instead of a foreclosure.
So if you're thinking of selling your home (short-sale) the key is to price is competitively (no surprise there), stage it well, market it, and make sure you have a reliable and skilled realtor to make it happen. As a short-sale listing agent, I know how much time and effort it takes to put these transactions together. If you want to see one of my short-sale files, let me know.
Feel free to email me if you have any further questions at michellemendoza@century21award.com
