Is a Short Sale For Me?
Are you upside-down on your mortgage?
Are you struggling to meet your financial obligations?
Has your financial institution denied your attempt to modify your loan?
Are you faced with foreclosure?
If you answered yes to ANY of these questions, you may wish to consider a short sale as a solution to your current situation.
If you are considering a short sale, you are not alone. Listed below are short sale questions commonly asked by those considering doing a short sale.
What Is A Short Sale?
A short sale is is the sale of a property at current market value. Regardless of the mortgage payoff amount, which is often times significantly higher than the sales price, a short payoff amount is negotiated with the lien holder(s).
Why Should I Do A Short Sale, Instead Of Allowing My Property To Foreclose?
With foreclosure comes excessive liability. Foreclosure opens a homeowner up to law-suits, deficiency judgments, a 7 year credit hit (making you “un-lendable”). Banks will often come after a homeowner’s assets as well. All of these terms are negotiated in the short sale process, ideally resulting in true release of the note, with no further consequences.
What Are The “Pro’s” To Doing A Short Sale?
Aside from the full release of the note with no deficiency judgements, doing a short sale results in a minimal credit hit, allowing you to be “lendable” in as little as 2-3 years from the date you completed the short sale (depending on your credit score and the steps you take to improve your credit).
How Long Can I Stay In My Home?
Despite not paying your mortgage, initiating the short sale process allows you to stay in your home until the conclusion of the short sale. This time frame ranges from lien holder to lien holder, but is typically anywhere between 3-6 months.
What Is The Short Sale Process?
To summarize, a “typical” short sale transaction will look like the following: List the property, obtain an offer at fair market value, assemble the short sale packet, open negotiations with the bank, achieve short sale approval, open escrow and proceed to closing.
Is A Short Sale Guaranteed?
No short sale is alike. Unfortunately no one can guarantee the approval of a short sale. What can be said, however, is that banks are more likely to approve your short sale than they are to approve a realistic loan modification.
What Documentation Will I Need To Provide To You?
The following documents are needed from the seller in order to complete a short sale packet:
Hardship Letter (an explanation of why you’re pursuing a short sale) dated and signed
Tax returns for the past 2 years
Bank statements & Mortgage statements for the past 2 months
Pay stubs for the past 2 months
1126 Financial form (Provided by Brenda & Brendan Winans). If self employed please provide a profit and loss statement
Is there anything protecting me during, and after the process?
Still have questions regarding short sales? Please contact us with any additional questions that you may have, and we will be happy to answer them as soon as we are able.