Short sale What is it?
The simple answer is. A short Sale is a sale were there is not enough money to pay all that is owed on a property when it sells.
So basically you are asking the lien holder to take less money than they are owed.
Why would a lien holder do this?
It could be much quicker than a foreclosure and the lien holders may get more in a much shorter time frame than if it forecloses.
Why would a seller want to do a short sale?
These days there seems to be a lot of reasons some good and some not so good.
It is not a get out of jail free card or a fresh start. It will effect your credit in a negative way. Know one seems to know for sure how much it will effect it or for how long. But it should not be entered into lightly. Get some legal advice before hand.
The lein holders have short sale packages some of them vary but they are similar.
The seller should be able to provide these basic things:
1) A one page hardship letter stating why you cant pay your mortgage
2) At least 3 months of bank statements.
3) A monthly budjet showing were you money is going.
4) A list of all your assets and Liabilities.
5) Recent pay check stubs from all income sources
The lien holders want to know why they should take a loss
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