Qualifying for a Short Sale
There are many factors that will determine if you qualify for a short sale. A short sales expert will be in touch with helpful information. Click here now to compare the differences between a foreclosure and a short sale. To determine if a short sale of your property is a possibility, please complete the form below.
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Find Out if you Qualify:
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How To Do Short Sales
Except for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007, be aware the I.R.S. will consider debt forgiveness as income, and there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. In some states, this amount is known as a deficiency. A lawyer can determine whether your loan qualifies for a deficiency judgment or claim.
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
You may need to make a half dozen phone calls before you find the person responsible for handling short sales. You do not want to talk to the "real estate short sale" or "work out" department, you want the supervisor's name, the name of the individual capable of making a decision.
When you go through the short sale process, your lender will require certain documentation.
Remember, the lender does not want to take the home back through foreclosure. That is a last resort for, both, the homeowner and the lender. The lender would rather accept a short sale as long as the borrower can show an inability to pay the mortgage.
What is the First Step to Getting Approved by your Lender?
Each lender has their list of required documentation. Therefore, the first step is to give your Realtor a Signed Letter of Authorization to speak with the lender about your account. Click here for additional Required Documentation that you and your agent will need to submit to your mortgage lender to determine if you qualify for a short sale.
IMPORTANT NOTE: Never submit an incomplete package. Some lenders receive hundreds of requests a day. It is not uncommon for a loss mitigator to have 200 - 400 files in which they are working. Incomplete packages will be set aside and you will have to start over again.
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.
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
You may need to make a half dozen phone calls before you find the person responsible for handling short sales. You do not want to talk to the "real estate short sale" or "work out" department, you want the supervisor's name, the name of the individual capable of making a decision.
When you go through the short sale process, your lender will require certain documentation.
Remember, the lender does not want to take the home back through foreclosure. That is a last resort for, both, the homeowner and the lender. The lender would rather accept a short sale as long as the borrower can show an inability to pay the mortgage.
What is the First Step to Getting Approved by your Lender?
Each lender has their list of required documentation. Therefore, the first step is to give your Realtor a Signed Letter of Authorization to speak with the lender about your account. Click here for additional Required Documentation that you and your agent will need to submit to your mortgage lender to determine if you qualify for a short sale.
IMPORTANT NOTE: Never submit an incomplete package. Some lenders receive hundreds of requests a day. It is not uncommon for a loss mitigator to have 200 - 400 files in which they are working. Incomplete packages will be set aside and you will have to start over again.
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.
Copyright © 2006-2013 | Elegance Realty, LLC, | All Rights Reserved.
Disclaimer: The information provided on this website should not be constituted as legal advice.
The content is intended to provide general information about the short sale and foreclosure processes, and should not be acted upon without the counsel of a qualified REALTOR®, attorney, and tax expert.
Disclaimer: The information provided on this website should not be constituted as legal advice.
The content is intended to provide general information about the short sale and foreclosure processes, and should not be acted upon without the counsel of a qualified REALTOR®, attorney, and tax expert.