How To Short Sale

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Get Help With the Short Sale Process

 

Short Sale Your Home – If you find that you are in over your head with your mortgage, find foreclosure is looming and you are unable to qualify for a modification, you will want to consider a short sale.

Many home owners in today’s real estate market owe more on their mortgage than their home is worth. A lost job, reduced income, change in family status, or a need to relocate put these sellers in an awkward situation of not being able to afford to sell the home that they can no longer afford. Banks such as Bank Of America, Wells Fargo, Chase and many more allow sellers in these situations to pursue a real estate short sale, where the bank agrees to release the mortgage on the home for less than they are owed.

Steps To Avoid Foreclosure And Successfully Short Sale Your Home:

Step 1 – Contact A Local, Licensed Short Sale Realtor Who Is Certified In Real Estate Short Sales And Distressed Properties To Assist You. Click here to request a list of certified short sale Realtors in your area.

Have your Realtor determine the true market value of your property. An experienced, certified short sale Realtor knows the current conditions of your local real estate market and can provide you with a free CMA or Comparative Market Analysis. This is a smart and free way to get an accurate idea of your home’s worth. Hiring a licensed appraiser will not work with your already tight budget . A short sale Realtor will help you determine your homes current market value for free.

Real estate closing costs & commissions? It does not cost you anything to do a short sale. In fact your lender may provide you with cash to relocate. Often times upside down homeowners will be hesitant to even contact a real estate agent because they don’t have the money to pay the commissions. In a short sale, the banks pays the Realtors commissions and closing costs associated with closing the sale. So if you’re concerned that you don’t have the money to pay the Realtor’s commissions don’t worry, you should have zero expenses when short selling.  Be careful using any real estate agents or companies who try to charge you upfront fees.  Click here for a list of certified short sale Realtors in your area.

Even if you are unable to make your payments you can stay in the home until the short sale is completed. This will allow you time to evaluate your next move and hopefully save some money. In return you will need to cooperate by working closely with your agent, keep the home in good condition and show the home to potential buyers when requested.

Step 2 – Create A Short Sale Hardship Package To Send To Your Lender

All lenders will provide the necessary paperwork for you to fill out in order to be approved for a short sale. Your short sale Realtor will be able to help you submit your paperwork or hardship package to your lender.

Your lender will require the following paperwork:

  • Short Sale Hardship Letter: Explain your circumstances clearly. Is it a job loss, an illness, a divorce, or something else that is keeping you from making the payments? Whatever the reason, be prepared to back up your reasons with documentation of reduced income and/or increased expenses.
  • Documentation supporting your hardship; Most recent two months of pay stubs, most recent two to three months of bank statements & previous years tax returns.
  • A CMA or Compartative Market Analysis: A qualified and experienced short sale real estate broker can provide a CMA that verifies the value of your home at no charge. The short sale realtor/agent must have experience handling negotiations with lenders. If the Realtor has no experience dealing with loss mitigation and negotiators, the seller is the person who may suffer.

Your short sale Realtor will inquire with your lender for any available financial Incentives. Lenders can offer $3,000 for relocation assistance if you qualify for the HAFA program. Your lender may also have additional in-house programs available.

With these documents you will create a package explaining to your lender(s) why you require a real estate short sale.

Step 3 – You And Your Short Sale Realtor Submit All Required Paperwork [Short Sale Hardship Package] To Your Lender.

Step 4 – Submit An Offer on Your Home

Once you receive an offer, your short sale Realtor will need to submit it to your lender in writing, signed by the buyer. At that point, your lender will work to gain approval of your offer. If you have a second mortgage with another lender, or any other debts against the home, your short sale Realtor will work with them to get their approval as well.

Step 5 – Approval From Your Lender

As your lender considers your offer, they may need to determine the fair market value of your home. To do this, they will order a valuation of the property and look at the sale price of other homes of similar size in your neighborhood. Once the fair market value of your home is determined, they may make a counter-offer. It’s not unusual for offers to be withdrawn all the way up until the closing, so during this time, we encourage you to continue marketing your home and send in any offers you may receive.

Step 6 – Receive Approval

Once the offer has been accepted, your lender will provide you with an approval letter releasing the home for purchase. With everything in order, final documents will be prepared and a closing date will be scheduled. Your house is now sold and your mortgage and any other loans against the home are paid off from the proceeds of the sale.

Speed up the short sale process and prevent your lender from moving forward with foreclosure by:

  1. listing your home today with a qualified and experienced short sale Realtor
  2. submitting your short sale paperwork (package) to your lender

Start on the road to financial recovery and a new beginning today.

How can I prevent foreclosure?
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What is a short sale?
Why should I short sale my home?
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