Winchester, VA, was hurt by the recession just like most communities around the US. The housing market took a huge hit, and REOs popped up everywhere throughout 2008-2011. In mid-2011, short sales started to pick up popularity with underwater homeowners.
The local housing scales are starting to tip in favor of short sales today rather than foreclosures. Because of that, homeowners need to have a better understanding of what is involved in a short sale in order to make the process less painful. If you're not prepared, they will be painful. A few simple preparatory steps can make the process more fluid and less stressful.
- Contact your lender before listing your home. Tell them your circumstances, and ask them for permission to list your home as a short sale. Don't list it before you speak with your lender.
- Ask them if they will send you a short sale package to help you get started with the process. Some banks only want you to use their package. It's best to do this well - one time - up front.
- The short sale package will ask for things such as: A hardship letter stating why you need to short sale your home, 3-6 months of banks statements, 2-6 months of pay stubs or income verification, a financial statement showing debts/income, 1-2 years of tax returns and information on a second mortgage is you have one.
- Contact a reliable experienced Realtor who knows short sales. Make sure the agent can provide references from successful short sales. Every agent who has the certification "expert" associated with his/her name is not necessarily an expert.
- Make sure you price your house to sell. Don't price it to give it away. Your lender will likely reject offers that are coming in radically out of sync with the market. You'll frustrate yourself and your potential buyers.
- Stay on top of things. Keep your short sale package up to date. Each month, replace the oldest documents with the most recent documents.
- Keep your payments current. If you stay current, many lenders will allow you to purchase another more affordable home at the close of your short sale.
- If your circumstances change and you desire to keep your home, call your lender right away and discuss your options for a loan modification.
Don't ignore the obvious. If your home is putting you in extreme stress, consider a short sale. And, if you do, call your Winchester, VA, short sale pros - Cornerstone Business Group, Inc.