What is a “Short Sale”?
A short sale occurs when you sell your home for less than the outstanding balance of your mortgage. It is an alternative to foreclosure that has potential significant advantages to you compared to foreclosure.
When would you consider a short sale?
When you can no longer afford your mortgage payments or when you have to sell your home.
Why would my lender consider taking less than I owe?
Because it is less expensive for them compared to foreclosing on the property.
How to get started:
Assemble all the information your Realtor® will need to implement a short sale on your behalf:
- Hardship letter outlining why you need relief
- Information on all mortgage loans and home equity lines of credit
- Financial statements for all borrowers on all loans
- Two months of bank statements for all borrowers
- Pay stubs for all borrowers
- Last two years’ tax returns for all borrowers
Other documentation required:
Your Realtor® will work with you to prepare the additional documentation your lender requires:
- Listing agreement for the sale of the house
- Sales contract contingent upon lender approval
- Letter of authorization from you allowing your Realtor® to work with your lender on your behalf
- Settlement statement estimating the proceeds that your lender will receive
- Pricing history during the listing period and leading up to obtaining the sales contract
What is my house worth? Do I really need to do a short sale?
You can start with a complimentary market analysis of your house to discover it’s likely selling price. Based upon your home’s potential selling price you can then determine the best course of action. As your Realtor®, I am happy to help you with all of your real estate needs. I can also refer you to other professionals that can help you understand the tax and legal implications of a short sale and other types of real estate transactions. Feel free to contact me and I’ll be happy to help!
Rowland Fellows
(916) 792-2368