While short sales and foreclosures are decreasing, we still have homeowners coming to us for assistance when they need help.
Homeowners that are behind in their mortgage payments or know that they will be shortly, are often looking for a solution to help avoid foreclosure. A short sale is a situation in which you sell your home for less than what is owed the bank and the bank agrees to release the liens on the property. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing as there are legal fees and carrying costs that are associated with a foreclosure.
Homeowners can be faced with a variety of "acceptable" hardships for a short sale, such as:
- Payment Increase or Mortgage Adjustment
- Loss of Job
- Business Failure
- Damage to Property
- Death of Spouse or Family Members
- Severe illness
- Inheritance
- Divorce or Separation
- Relocation
- Military Service
- Insurance or Tax Increase
- Reduced Income
- Too much debt
- Incarceration
In order for us to assist you with a short sale, we will start by assessing your situation and collecting documents that lenders will require in their review. In terms of your situation, your loan type (FHA, conventional, VA) will have an impact on how we handle your short sale as well as if you have a second loan on your home. To get started, we'll work with you to pull together the appropriate paperwork, which includes:
- Third Party Authorization
- Hold Harmless Agreement
- Hardship Letter
- Financial Worksheet
- Last two month's bank statements
- Last two paystubs
- Last two year's tax returns
- IRS form 4506-T
- Listing Agreement
- Property Disclosure
- Community Association Disclosure
- Short Sale Disclosure
Once we have collected all the documents, we can begin the short sale process with your bank(s). In a short sale, the homeowner does not pay any fees or commissions. That is covered by the bank. As a Certified Distressed Property Expert, we have the knowledge and experience to help you with a short sale and avoid foreclosure. Contact us today to get started.
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