A Short Sale is a Process Not an Event

Homeowner's that are facing foreclosure's do not have to face the detrimental financial issues and headaches alone. But by ignoring a foreclosure, packing your bags and running away from the home will not erase a negative strike on your credit or the fact that you have defaulted on your mortgage loan.

You can run but you can't hide. There are solutions for you! You may contact the bank and tell them that you will pay the backed up mortgage payments to stop the foreclosure process or, you can Short Sale your property before the bank actually repossesses your property.

Wanting to place your home as a Short Sale but don't know where to begin?

Here are a few simple steps to guide you in the process of a short sale.

Contact several Realtors who are Short Sale experts and qualify them to do the job to represent you and your home. Once you hire a Realtor to represent you in the short sale process, the Realtor will then contact your financial institition to let them know that your home will be on the market for a lower price of the market value of your home plus the commission which the bank pays, granted that there are no second lien holders, and you were honest to the bank about your financial prerequesites to begin with when you applied for the loan.

You will need:

• A hardship letter stating to the bank the reason for your 'hardship' in meeting your mortgage payment obligations
• W-2 Forms for the past 2 years
• 6 months bank statements (the amount of months will depend on the loan institution)
• Authorization letter to release your personal/financial information to the Realtor
• Listing Contract Agreement from the real estate firm/Realtor

Let's stay on a positive note and hope that your home is going to sell in the short sale (pre-closure)status. But before you can achive the proper sale of your home, you need to keep an open mind of the market trends and home values in your area.

By allowing the Realtor to control the short sale process, you will be able to accomplish the success of the sale of your home much faster than if you determine the price of your home because you 'know' how much your home is worth.

A short sale is just that. Remember that you have defaulted on your mortgage payment and sad but true, your home, no matter how much remodeling you did will have to come down in price.

Remember, banks do not want to take or own your home, they don't want to 'posses' your property. The majority of the banks understand the mortgage crises and are there for you to help you with your financial distress.

Talking to someone about your foreclosure and your financial situation is the first step to overcoming a negative strike on your credit. Don't let this happen to you. Instead, opt for solutions that are on your side.

You are not alone, even seasoned real estate investors have taken a hard hit in their investments. Even high end homes are being foreclosed on. The best advise for you is to have confidence that there is a light at the end of the tunnel.

© 2008 Diana Perez