Are you Behind on your Mortgage? Do you have Questions?

Short Sale

If you are behind on your mortgage and you are needing help to avoid foreclosure please take a minute and read the information provided below.
If you are interested in buying a Short Sale property and would like help finding one of these good deals please email me your contact information. And I will be glad to help you find a short sale and hopefully we can both help a troubled homeowner avoid Foreclosure.

Basics of a Short Sale

Short sales happen when a lender agrees to accept less than the amount owed against the home because there is not enough equity to sell and pay all costs of sale. Not all lenders will negotiate a short sale, and that is why a Realtor or a lawyer can be a tremendous help by contacting the lender’s loss mitigation department to find out.
You can’t just wake up one morning and decide you’re going to sell your home at a loss by asking for a short sale. It used to be that lenders wouldn’t even consider a short sale if your payments are current, but that has changed. However, realize that lenders will be more agreeable to negotiation if your payments are in arrears. Plus, if you have cash assets, the lender might try to tap those accounts.

Banks grant short sales for 2 reasons: the seller has a hardship, and the seller owes more on the mortgage than the home is worth.
A few examples of a hardship are:

• Unemployment / reduced income
• Divorce
• Medical emergency
• Job transfer out of town
• Bankruptcy
• Death

The seller will need to prepare a financial package for submission to the short sale bank. Each bank has its own guidelines but — with the exception of Wachovia, which is the best short sale bank in the world — the basic procedure is similar from bank to bank. The seller’s short sale package will most likely consist of:

• Letter of authorization, which lets your agent speak to the bank.
• HUD-1 or preliminary net sheet
• Completed financial statement
• Seller’s hardship letter
• 2 years of tax returns
• 2 years of W-2s
• Recent payroll stubs
• Last 2 months of bank statements
• Comparative market analysis or list of recent comparable sales

How is a Short Sale Seller’s Credit Affected?

Fair Isaac released a report that says credit scores are affected about the same, whether a seller does a short sale or foreclosure. Fair Issac says the average points lost on a FICO score are as follows:

• 30 days late: 40 to 110 points
• 90 days late: 70 to 135 points
• Foreclosure, short sale or deed-in-lieu: 85 to 160
• Bankruptcy: 130 to 240

If you have any questions about selling or buying a short sale property please don’t hesitate to Ask..

Your Exit Realtor of Central Arkansas- Blake Roussel Realtor

Buying and Selling a home is a huge Financial decision, Blake Roussel with Exit Natural State Realty is your Real Estate Professional for Conway, Little Rock, Maumelle, Benton, Bryant, Jacksonville, Cabot, and Searcy, Arkansas. My goal is to walk you through each step of the buying or selling of your home, so that we have a smooth transaction.  Call Us today 501-230-6082. Customer Satisfaction is our #1 GOAL, we are here to serve you throughout this process. Check out what my past clients have said about our Customer Service. We look forward to hearing from you.

“Then Difference between FOR SALE and SOLD”