Short Sale

    For all the homeowners who are upside down and can no longer make their mortgage payment (because of either a job loss, divorce, or an option ARM that’s resetting higher), there are alternatives to bankruptcy or foreclosure proceedings (which sticks on your credit report for at least 10 years). One of those options is called a "short sale." If your bank agrees to a short sale, you then hire an agent to find a buyer for the house, you sell the house for a loss, and with the bank’s blessing, they agree to eat the loss (although they could still demand the homeowner make some kind of payment or share the loss).

    Although all lenders have varying requirements and may demand that a borrower submit a wide array of documentation, the following steps will give you a pretty good idea of what to expect.

• Call the Lender
• Submit Letter of Authorization
• Preliminary Net Sheet
• Hardship Letter
• Proof of Income and Assets
• Copies of Bank Statements
• Comparative Market Analysis
• Purchase Agreement & Listing Agreement

    Now, if everything goes well, the lender will approve your short sale. As part of the negotiation, you might ask that the lender not report adverse credit to the credit reporting agencies, but realize that the lender is under no obligation to accommodate this request.

I have helped many homeowners with their short sales.

Contact me and I can help you with your short sale.