Many homeowners in Contra Costa County are facing some very difficult decisions.  Some are behind in their loan payments and some are upside down and owe more on their mortgage than their home is currently worth in today's market.  Terry Osburn and I have teamed up to provide these homeowners with guidance and information in order to navigate the rough waters of a short sale.  To that end, we have launched a new blog to offer resources and information for those considering a short sale as an alternative to a foreclosure action. Check out Contra Costa Short Sales.  We offer confidential consultations to Contra Costa homeowners.  Doing nothing should not be an option, you must act fast to protect your future financial health.  While results can't be guaranteed because there are so many variables, you need to explore your options and the potential pitfalls and problems with each of the options available.

If you're interested in working with your bank to accept a short sale, there are many documents you'll need to gather.  Most banks have a loss mitigation department who's job it is to resolve problems associated with a defaulted loan.  Most often you'll be working with a loss mitigation officer charged to help the bank minimize the loss due to a loan in default.  Though each bank has its own guidelines, many banks will not consider a short sale until you actually are late on your loan, and have received an offer on your property. Its vital to have the short sale package of required documents ready so that you can work thru the process quickly.  Most buyers do not want to wait weeks or months to navigate a short sale, so to facilitate a successful sale, get your paperwork in order.  Most commonly, the following items are required:

• Listing contract
• Sales contract
• Hardship letter
• 2 years W-2's or tax returns
• 2 months pay stubs
• 2 months bank statements
• Recent statements for 401k, retirement, investment accounts
• Financial statement listing current liabilities, assets and income information

At times a lender or loss mitigation department may request additional information and documentation in order to verify the change in the borrowers financial situation and hardship.  Important to note that some of the requested documention may lead to re-verification of your financial status at the time of your loan origination.  And remember, even though you do everything your lender asks, provide all the documentation and obtain an offer, it is still solely the bank's decision as to whether to accept the short sale terms.  Some find that no matter what they do, foreclosure is inevitable. But that is why, more than ever, it's vital to have the right real estate professional on your side.

And coming soon to the Contra Costa Short Sale Blog . . .

Alternatives to foreclosure (refinancing, deed in lieu, bankruptcy, etc.)
How your REALTOR will work with your bank
Anatomy of a proper hardship letter, what do you write?
Ramifications of short sales and foreclosures (tax and legal considerations)
Property Marketing for a short sale
Short Sale Processing
What happens in a foreclosure
. . . and much more.

Your Contra Costa and Bay Area Short Sale Resource.  Call today for a confidential consultation and frank discussion of your options to avoid foreclosure.

Catherine Myers, REALTOR
http://www.diablovalley.net/

Terry Osburn, REALTOR
http://www.terryosburn.com/