THE SHORT SALE PROCESS

As we know short sale occurs when the lender agrees to discount a loan balance and accept less than the total amount due incident to the sale of a home due to financial hardship and I all ready discussed about short sales in my previous posts. So i will talk about the short sale process?

Short Sale Process: - Once homeowners find themselves in a circumstance where their home is worth less than the mortgage balance this is just the beginning of the process to be contacting the lender to see if the property qualifies for a short sale. If the owner/borrower has other assets which would enable them to pay off their mortgage, then the lender will not approve the short sale and could get a deficiency judgment against the homeowner for the difference of the amount owed on the loan and the sale price of the home. The first and most practical step would be to seek the assistance of a competent real estate short sale agent who should be specializes in bank short sales and the short sale process. While each lender has their own specific requirements there is a consistency in the nature and type of documentation that can be expected. Working with an experienced shortsalesafe.com is good move in getting your short sale approved with no deficiency judgment.

Hardship Statement is a written statement which describes for the lender what has changed making it difficult/impossible for the homeowners to continue paying their current mortgage, due to lost a job or had a significant decrease in income, was hospitalized or had some other unexpected illness or medical emergency contributing to their problems.

Statement of Income will require a hardship letter and proof of the financial statement outlining all liquid assets, including savings accounts, checking accounts, money market accounts, stocks, bonds, cash and other real estate. Obviously this statement needs to be consistent with the facts outlined in the hardship statement in order for a lender to seriously consider the request.

The advantage of a short sale is that the owner can save their home from foreclosure and their credit. The seller simply walks away at the closing not owing any money on their mortgage. Of course, they have lost their equity in the property by that time.

Avoid-foreclosure..... Do a short sale..!

Short sales are the hottest thing going in the distressed-property market, and the trend is expected to get even hotter in coming weeks. While a short sale may sound appealing, it's important to understand what a short sale is, how it works and how it can affect your income and tax liability. If you do not understand the process, it could end up costing you a considerable amount of money. A short sale is a complex process, so it's best to work with a professional such as shortsalesafe.com.

If you are facing a debilitating adjustable rate mortgage interest rate increase, you are not alone. In fact, you are among the hundreds of thousands of residents who are in the same situation. If you are unable to continue paying your mortgage payments, you only have a few financial options available to resolve the situation for you and your family. You can attempt to negotiate for a loan modification, reducing your monthly financial obligation. In the event that you can still not make the mortgage payments, you can list your home for sale

A short sale is one of the many ways in which a home owner is able to prevent himself and his property from going into foreclosure. A short sale is a far less expensive process than a foreclosure and it also takes much less time to complete. Buyers of property in short sales will typically negotiate with lenders and lien holders to pay them the debt owed at discounted cost.

Therefore, if you are a buyer who plans to engage into a short sale, it would be wise to ask the opinion of a real estate short sale professional like us. We can provide you with a complete explanation of short sale and how the process works. In this way, you can be prepared to gather all the needed data to accomplish the transaction and move into your new house.

WHAT IS A SHORT SALE?

A 'Short Sale' is named based on 'shorting' a bank on the amount due on a given mortgage. Specifically, a short sale is when the bank lets a distressed homeowner, who owes more than his property is worth, settle up by paying less than the total owed.

Generally, short sales are used when the homeowner is both behind on payments and owes more than the property is worth as a way to create equity for the investor so they will purchase an otherwise non-performing asset for the bank. Many homeowners have turned to real estate short sale as a way to avoid foreclosure, especially after having unsuccessfully tried other loss mitigation options such as loan modification. With a short sale, you may not get to keep your home, but you get to avoid foreclosure and the stress that comes with it.

Short sales are difficult to pull off, requiring negotiations with many layers of bureaucracy. Frequently, the bank you are sending your payments to is not the bank that owns your loan. In fact, it may have passed through the hands of two or more banks. Therefore, not every bank will agree to a short sale, and not many people are willing to buy short sale homes. That’s why it pays to work with professionals like shortsalesafe and we will make sure you take the right steps. After all, it’s not just your home at stake—it’s also about your financial future. With good planning and a dedicated team, you can sell short sale and get your mortgage cleared—and start rebuilding your finances right away.