Cape Coral Short Sale.  What is a short sale? A short sale is when a property is sold for less than is owed on the mortgage.

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When is it done? Homeowners who are struggling to make their mortgage payments may try to arrange a short sale so they can avoid going through foreclosure. Banks will approve a short sale when it's in their best interest to do so. If they think they can recoup more money through a foreclosure, then they'll deny the homeowner's request for a short sale.

Who benefits? If all parties do their homework before entering a short sale agreement, then usually everyone involved can benefit. The homeowners for instance, avoid the stressful process of foreclosure.  Banks also want to avoid foreclosure whenever possible because they're time consuming and risky. There's no guarantee that they'll get a reasonable amount of their money back, and they also don't want to be property managers. A short sale allows the bank to walk away fairly quickly.

Buyers benefit from a short sale also, because they can get a great deal on a property. Also, because the homeowners are actively trying to sell the house, they're likely to keep the property in good repair. The short sale makes up a large part of the Cape Coral Homes for Sale.

Where do you start? If you're thinking of trying to do a short sale, you should immediately speak with a REALTOR® with experience in this area. A short sale is more complicated than straight sales, so you want someone who really knows what they're doing. Next, you need to collect the following information to give to your lender:

• an exhaustive list of all your monthly expenses
• pay stubs and tax returns for the last two years
• a letter explaining your financial situation, and how you're unable to make the mortgage payments. Be honest; don't try to be modest. You must show the lender you have a valid reason for not being able to pay them and a short sale is in their interest. The bank considers things like job loss, death of a spouse, long-term medical issues, and divorce as legitimate examples of financial hardship.

Next, you need a buyer. You also need your agent to prepare a comparative market analysis to present to the bank. What you want is for the bank to know that a) you can't afford your payments, b) you have legitimate hardships, c) someone wants to buy the home, and d) the amount the buyer is offering is as much as the home can get in the current market. If the bank thinks it can sell the house for more money themselves, they'll proceed with foreclosure instead of a short sale.

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What's the catch? Lenders are also notorious for taking months to respond to a short sale offer. This means that both you and the buyer need to be patient. Also, there's no guarantee that the lender will accept a short sale offer. They're within their rights to reject the offer outright.

 If you have any questions about Cape Coral short sales or foreclosures, please feel free to contact us . If you're a buyer, be sure to check out the links on our website for short sale and foreclosure listings in Cape Coral and surrounding areas.

For more info call me at 239-691-0157