Below, you'll find a summary review of the necessary steps to Short Sale your home. For a complete analysis on How to Avoid a Foreclosure however; we recommend you also read the full report at this link:
A Cribsheet Review of the Necessary Steps:
Remember to review Step number one above regarding contacting your lender. This documented contact with your lender helps you in future communications and may also help you with time. Be honest with your intent to resolve the matter associated with your hardship and the mortgage.
Secondly, contacting an experienced REALTOR®, a real estate attorney and potentially an accountant will help the necessary decisions that need to be made associated with the options based on the timing of the hardship. For example: Default stage, Pre-Foreclosure Stage, Notice of Foreclosure, Sherriff's Sale Stage, Redemption Stage. Each and every stage have a variety of options. Contact us to sort them out.
Next item that determines a sellers ability to qualify for a short sale involves a financial disclosure which includes all income, debt and liabilities. The type of documentation to qualify for a short sale can best be described as the following:
- Authorization Letter - In order to have an experienced REALTOR® handle the Short Sale, lenders will require the borrowers permission or authorization for the REALTOR® to assist and cooperate in the information sharing pertaining to the loan(s), your contact information, the property, the agents name and the brokerage contact information helping with the transaction.
- Hardship Letter - It is best to explain the unforeseen hardships in writing to the lender. Examples of hardships include: family death, divorce, change of income status, job loss, unexpected medical bills, renter/tenant hardships, adjustable mortgage rates and others are just some of the unforseen hardships many people are experiencing.
- Preliminary Net Sheet/Settlement Statement - This is where experienced Short Sale REALTOR® prepares an estimate of the expected sales price and the expenses that will be associated with the sale of the property. This Net Sheet includes: unpaid loan balances, fees, penalities (if any).
- Proof of Income - The lender(s) will require proof of income in the following manner: bank statements (all accounts), asset statements, additional real estate owned, and investments owned. In other words, a full financial disclosure is required to move forward.
- Market Analysis or Broker Price Opinion - This element is necessary for the lender to have a good understanding of the actual value of the property that is subject to a Short Sale payoff. Proving this information to a lender is best done by a professional who does Broker Price Opinions and that usually is experienced Short Sale REALTOR® .
Thank you for taking the time to review the above. If you simply want help in getting started, CONTACT US at your convenience. You are in good hands.
Also, you just reviewed the necessary steps to Short Sale your home. For a complete analysis on How to Avoid a Foreclosure however; we recommend you also read the full report at this link:
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