While the Denver real estate market has held up better than most of the country, we still have our fair share of Denver short sales. During my many discussions with distressed Denver homeowners regarding the short sale process, I have been asked numerous times when the best time is to walk away from a home. This tends to be a heated debate between short sale experts since there are pros cons for each side. Here are a few different perspectives, so that you may choose the best option for your family:

Pros for Staying In the Home While Doing A Short Sale

• An occupied home tends to show better and sell more quickly, since buyers can visualize themselves in the home. This tends to produce higher contracts and more serious buyers.
• If you are currently behind on payments, staying in the home while the short sale is negotiated can relieve some of the financial burden.
•  If the bank becomes aware that the home is vacant, it sometimes “winterizes the home,” which involves boarding up the pool or changing the locks. While this is only a minor hiccup in the grand scheme of things, it might delay the sales process.

Pros For Leaving The Home During The Short Sale Process

• If you are behind on your mortgage payments, the longer you wait to find a rental property, the harder it becomes. Because of this, I usually recommend that homeowners secure a place as quickly as possible.
• The amount of time it takes to get an approval on a short sale varies. While normally it is a longer amount of time than expected, an approval can come in sooner than expected. If you are living in the home when an approval is received, you usually will have to vacate it within 30 days or less. This can be very stressful if you’re not prepared.
• Sometimes living in the home while a short sale is being processed is stressful and emotional since you are preparing to move out.

Since there isn’t a “right answer” that works for everyone during the short sale process, I advise my clients to evaluate the pros/cons above and choose the option that works best for their families.

If you have any short sale questions, or other Denver real estate questions please don’t hesitate to contact Drew Armbruster at 720-840-1182. My team and I are here to help you through this challenging time.