Wednesday, June 19, 2013

Getting More Info About Short Sales

Short sales are certainly a common topic of discussion when it comes to the current real estate market. They represent the heartache and distress of the seller and present an incredible opportunity to the buyer. The thing is, they can be tricky on both ends. It is especially important to the sellers that they get the best deal they can out of an impossibly difficult process. By contacting an attorney, you can get more info about what a short sale is and how it can benefit you.

What Is a Short Sale?

A short sale occurs when you sell your home for less than you owe the mortgage company. In essence, it means that after the sale of your home you still “come up short.” By opting to do a short sale, you have the opportunity to avoid destroying your credit with a foreclosure, if your lender cooperates. Due to the fact that the seller will not have enough money to pay everyone involved in the process back in full, these types of home sales tend to be finicky. If any one of the parties is unwilling to take a financial hit, the sale is likely to collapse, leaving both seller and buyer in a tough spot.

What to Expect

If you are considering doing a short sale, you need to be aware that your lender has to sign a document stating they consider the loan paid in full upon the sale of the house and that they will not pursue you for the difference. As part of the short sale process, you will need to write a letter of hardship that explains why you are unable to make your payments and must participate in a short sale. If your hardship is due to any kind of criminal behavior, you can forget a short sale and would be wise to speak with an attorney about your options.

Other forms you will need to prepare and submit include proof of income, bank statements, and proof that you really cannot sell your home for the same amount you owe to your mortgage lender. After all of these forms have been prepared and submitted, your fate will rest in the hands of your lender, your attorney, and potential buyers. As stated previously, this process is extremely complicated and it is best to contact an experienced attorney for more info.

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