How to Short Sale a Home
Determine if you will qualify for a Short Sale based upon your Lenders guidelines., Prepare a "Hardship" package to include, but not limited to: * Income/Expense Report * Hardship Letter * Copies of Two most recent Pay stubs * Copies of Two most...
Step-by-Step Guide
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Step 1: Determine if you will qualify for a Short Sale based upon your Lenders guidelines.
A Realtor, Attorney, or your Lender can help you with this by answering a few questions.Is there more owed on the property than it's present market value? A comparable Market Analysis (CMA) or appraisal can be ran to determine the market value of the property.Are you presently behind on payments, or anticipate falling behind on payments in the near future? Lenders realize that there are many factors that contribute to a potential default.
Many lenders are eager to head off future problems at the pass.Is there a hardship? Examples of hardship are: * Unemployment * Divorce * Medical emergency / sudden illness * Bankruptcy * Death -
Step 2: Prepare a "Hardship" package to include
,, The contract is contingent upon you and your Lender coming to an agreement on the terms of the short sale.
Note:
A short sale is dependent on a buyer making an offer to purchase.
If you do not receive an offer, there is nothing for the Lender to review, and therefore, you will not qualify for a short sale.
So even if you meet all the other criteria, it is possible that no one will offer to buy your home.
A successful short sale is also dependent on the lender accepting the buyer's offer.
If the lender rejects the offer, a short sale will not take place.
In this case, a new, stronger offer will need to be submitted if the lender allows enough time before foreclosing. , You and the buyer sign the letter and the escrow period begins. , -
Step 3: but not limited to: * Income/Expense Report * Hardship Letter * Copies of Two most recent Pay stubs * Copies of Two most recent Bank Statements * Copies of Previous two years of Tax Filings
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Step 4: Hire a Realtor to list the property for sale and collect offers.
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Step 5: Accepted offer is sent to your Lender.
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Step 6: Acceptance by the Lender of the offer you submitted
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Step 7: causes the Lender to issue the "Letter of Acceptance".
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Step 8: Close of Escrow occurs when the buyer delivers the funds
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Step 9: the lender releases the lien and the seller delivers the deed.
Detailed Guide
A Realtor, Attorney, or your Lender can help you with this by answering a few questions.Is there more owed on the property than it's present market value? A comparable Market Analysis (CMA) or appraisal can be ran to determine the market value of the property.Are you presently behind on payments, or anticipate falling behind on payments in the near future? Lenders realize that there are many factors that contribute to a potential default.
Many lenders are eager to head off future problems at the pass.Is there a hardship? Examples of hardship are: * Unemployment * Divorce * Medical emergency / sudden illness * Bankruptcy * Death
,, The contract is contingent upon you and your Lender coming to an agreement on the terms of the short sale.
Note:
A short sale is dependent on a buyer making an offer to purchase.
If you do not receive an offer, there is nothing for the Lender to review, and therefore, you will not qualify for a short sale.
So even if you meet all the other criteria, it is possible that no one will offer to buy your home.
A successful short sale is also dependent on the lender accepting the buyer's offer.
If the lender rejects the offer, a short sale will not take place.
In this case, a new, stronger offer will need to be submitted if the lender allows enough time before foreclosing. , You and the buyer sign the letter and the escrow period begins. ,
About the Author
Tyler Moore
Brings years of experience writing about home improvement and related subjects.
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