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Wait before you give up on selling or foreclosure. Lets try a short sale.

By
Real Estate Agent with Remax United

 

 

 

What is a short sale? A short sale is a loss mitigation solution. The easiest way to explain a short sale is to ask yourself , "how much do I owe on my home?" If the answer is more than what the current value of that home is. Very simply put, a short sale is when the value of the mortgage is greater than the value of the property.

One reason a short sale is a better option than foreclosure is because it saves the seller's credit from being damaged. A foreclosure can drop a homeowner's credit score by 300 points or more. A short sale will affect a homeowner's credit score by 80 to 100 points on the average. It reads on your credit report as a paid lien or paid judgment, and is much easier and quicker to repair than a bankruptcy or foreclosure.

 A homeowner that is two months late on their mortgage payment or can  demonstrate the inability to pay their mortgage would be considered a short sale candidate. The homeowner is considered pre-foreclosure when the bank officially sends a notice of default or a notice that they're taking legal action against the homeowner to collect the dMoney owed. A short sale can still take place during the foreclosure process. There are  two reasons that a homeowner is not eligible for a short sale:

The foreclosure has already taken place and the home is up for auction or a homeowner has filed for bankruptcy.

You will need to get Steve Adams at 770-301-5381 as your real estate agent to sell your home as a short sale. Your first step after hiring me as your agent is to give me the Authorization to Negotiate with your mortgage CO in writing.

The next step is you to prepare a hardship letter .This letter must spell out the reason for financial troubles. This letter should be very explanative, honest and detailed. However, the reasoning must be an occurrence that was involuntary; such situations include a loss of a job or family member, illness or other unforeseen circumstances. Laziness or irresponsibility is not an excuse for defaulting on a loan.

The lender will also require two months of bank statements. This includes W2s, 1099s and tax returns. As your representative agent, I will show the lender that you the homeowner are unable to pay the mortgage. There should be no savings accounts, and if there is money in a savings account, we have to supply a budget sheet.  The Budget sheet lists all the personal finances including what it costs for gas, car insurance, dry cleaning, food, and any other expenses that they incur throughout the month.

The key to getting the mortgage company to agree to a short sell is proof of finances. Keep all your documents together and organized. Although it may seem like a lot of paperwork goes into the short sale package, what you must understand is that the more documentation you have for your agent, the more the bank is going to realize that you are about to loose your home and they will have another foreclosure and they will want to do a short sale. This information is so important; the outcome of your short sale rides on it.

If you are having trouble with your payments and see foreclosure is in the near future call Steve at 770-301-5381 and discuss if a short sale  is what might be best for you. Visit my web site at WWW.ThinkSteveAdams.com

If you are in the Tallapoosa Ga, Bremen Ga, Buchanan Ga.,Temple GA, Villa Rica Ga, Carrollton Ga, Bowdon Ga, or Cleburne Co AL, areas just give me a call. 770-301-5381. My main goal is to help you get the most out of your home and help get you out from your high payments.

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