This past weekend I received a call from a local homeowner who asked "What do I have to do to short sale my home". Usually one of the first sentences I say is "Be prepared to give up your first born child". In this case the potential seller adamantly exclaimed "Noooooo I won't do that!". Ok then the foreclosure will happen that you told me has already started on your home.
My next words were than you do not want to do a short sale. The reason is, when you short sale your home, your lender will want the same information as if you were applying for a loan or loan modification.
It is very rare (maybe a Wachovia short sale), when a lender will not want your past two years tax returns, most recent two months of checking and savings account, most recent two paychecks, financial statement, a hardship letter and your first born child. Ok, I am just kidding about the first born child part. When going through a short sale, it feels like you are giving up everything and potential sellers are scared the bank will say you have too much money. Please do not despair....it is just part of the process.
Once you fill out a financial statement, many are shocked that their net worth is negative, even with savings in the bank and 401K. When you balance out the credit card balances, auto loans, etc many, many people are underwater with their net worth or down to practically nothing.
There was even an article about how the younger generation's net worth is less because of the housing the last few years in today's news.
A Short Sale may be the way to go so you can get back on track. Those in the younger generation may have a better chance of recouping in the future. The oldest person I have done a short sale for was 84 years old.
An experienced Benicia Short Sale Agent will help you determine what to do in order to short sale your home.
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