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Are you “upside-down” with your mortgage? Is there no way to sell your house and at least break even or come to the closing table with even the smallest of profits? This is an issue that many people are dealing with as the real estate market continues to suffer from one of the worst financial downturns in recent years.

Many times, people choose to just walk away from their homes and have the home go into foreclosure. Others declare bankruptcy which can provide a sense of relief as well. There is another option called short selling. It is somewhat complex and can be extremely time-consuming, but can have a much better effect on your credit and with future purchase possibilities.  Here are a few personal tips to getting a short sale done:

1. Call your mortgage company and inquire about the procedures on short selling your home. Depending on the laws in your state and /or federal laws, many banks require you to be two months or more behind in your mortgage before you can apply for a short sale. These laws are changing fast so be sure to consistently check them.
2. Hire a real estate agent who has successful experience with short sales. A quick interview with specific examples of recent short sales will be needed.
3. Stop paying your mortgage. See item #1 on this list. Be prepared to take a credit hit, but it is not as bad as simply walking away.
4. Check with the bank where you took out your loan and see if they will disclose and accept your short sale price. Once you get an offer, the bank will come back to you with an acceptable price. If you can find this price out on the front end, it will be much easier.
5. List the home for sale.
6. Be patient. It can take a short sale between 10-14 months from list date to final approving/closing of the property. The bank can take at least one month to respond with an acceptance or counteroffer. Personal experience has resulted in a wait time of over 17 months for this process to be complete. Be patient and don’t give up.

Do you have any other short sale tips to add? Meet me in the comments section with your thoughts.