If you find yourself in the position of having to sell your home and it is not worth as much as you owe, you may be wondering what you should do. I am assuming here that you have either been turned down for a loan modification or have to move because of divorce, job transfer, or other circumstance.
So you have to sell. Here is what you should do.
1. You can not do this on your own. The banks will want the home to be extensively marketed and you can not do that as a FSBO. Since the lender will pay the real estate commissions that should not be a concern.
2. Gather your financial information. You will need 2 years tax returns, 2 months bank statements form all accounts, 2 months statements from all investment accounts, profit and loss for 2 years from any self employment.
3. Fill out a financial statement which shows all your income and expenses
4. Write a hardship letter which explains why you need to do a short sale
5. Make your home available for showings and open houses
6. Keep your financials updated every month and give the bank everything they ask for
7. Accept the best offer you can get on the property
8. Be PATIENT
If you have any questions about short sales in San Mateo or Santa Clara County please feel free to contact me.