Detroit Real Estate

So you want to sell your Canton home, but you owe too much and it is in foreclosure.  You just got notice of the sheriff sale and all your friends say you should try selling it as a short sale.  Before you lose it and it is locked up by the bank you want to clear up your outstanding debt.  But is a short sale the right way to go?

What does a short sale mean?  It means that you have to get the banks approval on the purchase agreement.  That the bank will agree to take less money than what is owed on the mortgage.   The problem is that short sales take time to get done.  Sometimes they take a month.  Sometimes they take six months. 

What happens in Michigan that once a sheriff sale happens then the short sale must happen within 6 months of the sherriff sale.  Otherwise it ends up as the banks property.  Then it becomes a foreclosure.  And the whole short sale offer is thrown out the window as the property is transferred to another department.  I had another offer blow up because the bank waited until the day before the property transfered to act.  The bank accepted the offer but said we had to close it in one day.  Unfortunately it was a mortgage deal and the bank had not even ordered title work.  So it was impossible to close.  What a torture for my buyers.

As a seller it may not be in your best interest to do a short sale.  Be sure to check with your bank to see if you will be liable for the difference between the mortgage amount you owe and the short sale price.  Be sure to get it in writing before you list it that you will not be liable for the difference.  If you don't get a letter releasing you from the liability it may not be worth doing a short sale.

It may be be better to let your home go to foreclosure.  Be sure to check with a lawyer on whatever you do to protect yourself from legal liability. 

Feel free to Search Canton homes for sale or call me to get your list of Canton homes for sale at (313) 310-9855

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