Right now you are probably asking yourself the following:

What is a short sale?

A short sale occurs when a lender agrees to let the homeowner sell his or her property when the lender will receive less than the current loan payoff at closing. This is a basic definition. There are many variations that occur in the negotiation process.

Should I be pursuing a short sale?

I respond to this with a question, “Can you and/or do you want to continue owning this property.” If you cannot afford to and do not desire to maintain ownership of your property a short sale may be right for you if your property is worth less than what you owe on it.

How do I know what my chances are with this bank?

You will never know unless you try. We know from experience what to expect from most major lenders, but lender guidelines change all the time. Every client’s situation is different from the next. His or her lender may be different. The loan product may be different. The mortgage insurer may be different. The investor behind the loan may be different. And the condition, location, and characteristics of the property are almost always different.

Should I wait?

No. You should contact someone immediately before you start missing payments. The goal is to avoid foreclosure! FYI – it is a common idea that you have to miss payments to get a short sale approved. It is mostly untrue. I have had clients that never miss a payment and close on their property as a short sale. I believe the misconception stems from lenders prioritizing files that are headed for the final stages of foreclosure and moving those files to the top of the heap. Why do they do this? They do it to save money. A foreclosure costs a lender a whole lot of money.

What is the first step to starting this whole process?

The first step is to get your financial picture into focus. Gather your tax returns, your mortgage statements, your personal bank statements, your income documentation, and a record of your monthly expenses. After you have a clear picture – or even a good understanding – of your finances it is time to find someone to guide you through the process.

Who the heck is Jesse Grumdahl?

Jesse Grumdahl is a Minneapolis Real Estate Broker and Realtor who is a short sale listing expert in Minnesota (with the #1 Re/Max Team in Minnesota for the last three years) who sharply focuses his energy on short sale listings in the Twin Cities metro area. Mr. Grumdahl does so with the help of his full-time, in-house staff that will always put his clients’ best interests first and foremost. Jesse’s goal is to get you out of your distressed situation with minimal damage so that you can move on with your life as quickly as possible. Jesse can be reached directly at Jesse@MnShortSale.com or 612-968-2161.