We all know that bank owned homes are properties that have reverted to the bank's ownership after an unsuccessful foreclosure auction. Many people mistakenly think that every property in danger of foreclosure ultimately ends as an REO property. However, there is still one thing that a borrower could do when confronted with the possibility of a foreclosure - a short sale.

In particular, a Los Angeles short sale allows the troubled homeowners in the area to sell their property for less than what they owe to the bank and to use the proceeds from this sale to cover their debts. But still, many think that the homeowner will always be at the losing end of a short sale deal, because of the fact that the property is generally sold lower than its actual market value. What many people neglects to see is that there are ways that a property owner could do in order to get the maximum price for his property.

Maximizing the Value of Your Property

The first thing that a homeowner should do before entering into a short sale is to determine the actual value of his property. A Real Estate agent can provide an estimate, but it is also advisable that you do your own market analysis of properties, particularly in your neighborhood.

You actually have a choice of either selling your house by yourself or engaging the services of a broker. The latter can give you a rundown of closing costs, but the essential thing to do is to add these all up and take them into consideration when pricing the property.

Of course, you will need to know how much you actually owe to the bank. Get this information as soon as possible so that you will know how much you will need to rise in order to settle your obligations with the bank.

In doing a Los Angeles short sale, doing the numbers is a very important task. You also have to accept that it is typical to get a negative sum if you subtract your debt from your selling price. While you may not be able to do something about, you can, however, maximize the value of your property.

This is why it is important that you keep your home generally well-kept throughout the entire process. Remember that prospective buyers would want to see and visit your house to inspect your property. Do not show that you are desperate for a quick sale - this will only further lower your price and embolden your buyer to offer an unreasonable low price. Be courteous and earn their respect by showing them that you are still dignified despite the unfortunate circumstance that led them there. This will allow you to gain a ground when negotiating with your potential buyers.

Finally, take note of the fact that banks dislike a large inventory of bank owned homes; hence, they will be supportive of any attempts from you to enter into a short sale. Ask them if they can somehow reduce the amount of your loan obligation so that you can have a more realizable amount to obtain.