Short Sales
Posted on July 14, 2008
Filed Under Bank Foreclosures |
Approval for the short sale requires working with the Loss Mitigation division of your bank or lender. Getting approval for a short sale can be a long and complicated process. It involves a lot of steps and a long trail of paperwork.
When lenders accept short sales, they agree to take less money on the home than what is owed on the mortgage. A Loss Mitigator will be assigned to your case and will review your finances to find out if you are eligible for a short sale.
There are certain requirements that determine if you are a good candidate for a short sale. First you most provide evidence that your home is not worth as much as the unpaid balance of the home loan. You can do this by getting a comparable sales report for homes that are up for sale or have been sold in your neighborhood. You can get such reports through realtors or by searching the Internet.
Next, you need to be in default for at least three months. Also, most lenders will only consider a short sale if there is no longer any equity in the home. If there is some equity left in your home or you have assets that you can draw from to get up to date on your mortgage, your lender or bank will probably not agree to a short sale.
It is also important to provide the bank or lender with proof that you are having financial problems because of health problems, divorce, unemployment, or bankruptcy. You also have to show that you have no other assets you can borrow from so you can make your mortgage payments.
Before you get approval for a short sale, your bank or lender will offer you a number of options that can save your home from bank foreclosures. Usually, this will take the form of loan modifications where the lender will place your late mortgage payments at the back end of the loan. There are some banks and lenders that will suspend or reduce your mortgage payments for a certain period of time.
There are a lot of options that are available to those who own homes and and who want to stop foreclosure. Every option comes with certain pros and cons. Before you accept deed in lieu of foreclosure, loan modification or short sale, it is important to look into all of the options that are available to you and determine what the best decision for you is.
If you decide to go forward with a short sale, there are a number of elements that need to be put in place. In the majority of cases, your bank or lender will need you to have a buyer for your home already in place. You can do this by working with a real estate investor or realtor who handles short sale transactions.
The short sale package needs to be provided to your bank or lender. Though requirements are different depending on the lender, you must provide detailed financial statements, a hardship letter, current bank statement, current tax return, and a realtor listing agreement, among other documents.
Going through the short sale process takes a lot of persistence, patience and organizational skills.
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[...] short sales is a good deal for many. However, it is important to investigate the home and get all the [...]
[...] option that you have when trying to save your home from foreclosure is doing a short sale. This is when you work with the bank in order to sell your home for less than it is actually worth. [...]
[...] may want to think about putting your house up for sale even if you do a short sale. A short sale is when the bank agrees to take less on the house than what is owed. If you cannot [...]
[...] of the options you have to get freedom from a foreclosure situation is resorting to a short sale. You can refer to this option only if you know that your house is not that worth as the amount of [...]