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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