Short Sale Assistance for Homeowners offering a home for less than what is owed on the mortgage. A successful short sale can prevent foreclosure and minimize negative credit impacts.
In order to qualify for a short sale, the borrower must submit a financial package to their lender that includes proof of hardship and financial records such as paystubs, tax returns, bank statements and a letter explaining their situation. It is important to be as thorough and complete as possible with this documentation. Also, to avoid delays, it is advisable to speak with professionals who are familiar with short sales and their paperwork.
The lender ultimately determines whether to approve the short sale. If the lender approves, the buyer and seller can proceed with the sale. The process can take months and can be very complicated. During this time, it is important to work with a real estate agent who understands and has experience with short sales.
Workout with the Lender
Before pursuing a short sale, it is a good idea to contact your lender directly and ask about loan modification programs or private mortgage insurance options. These are alternatives to a short sale and may be better for your credit score.
A successful short sale can result in a quick and relatively easy transition to a new home. However, it is important to be prepared for a long process and for any potential complications that may arise. For example, a buyer can withdraw from the transaction if the lender declines to approve the short sale or if the homeowner is unable to sell their home for the agreed-upon price.