3 STEPS to a SHORT SALE

First the definition..

What Is a Short Sale?

A “short sale” is a negotiated agreement with your lender to accept less money than they’re owed as full payment for your loan. If you do not have any equity and you can not afford to pay the Realtor and the closing costs, a short sale maybe the right solution for you.

#1

The most important step. .

You should consider a loan modification if possible at this time.

Obtain the correct documents required and call your lender.

A loan modification has to be a win-win for you and the lender.

To qualify for a loan modification these are some of the guidelines for you:

• Steady employment (two or more years) with the same employer or in same line of work.
• Low debt: no recent major buys. .and a debt-to-income ratio of 38 percent or less.
• Property is a home to be used as primary residence. 

#2

Hardship is an important component in a short sale, you must prove to the lender that a hardship exists. .and they must be willing to accept the short sale proceeds as full settlement of the debt.

Some examples are of a hardship are:

• Separation or Divorce
• Medical Bills
• Inability to work due to health reasons
• Death of Spouse
• Job Relocation
• Reduced Income or Unemployment
• Business Failure
• Bad loan / excessive rate adjustment

#3

When a Loan Modification fails and you have a qualified hardship. . then a short sale should your next choice.

Read “Is Short Sale Is and Option For You?”