Should I short sale my property?
This type of real estate transaction occurs when the lender agrees to discount the balance of a loan due to the borrower's financial hardship. It is almost never an option, but it is usually the result of a combination of events where the borrower needs to sale, the property's value is below the outstanding balance of the loan, and the seller is going through financial hardship, which leads to default on the loan.
If you are in a situation where you need to short sale your home, this article can help you to have a basic idea of how to go through the process. Just have in mind that the purpose of a short sale is to prevent your property from foreclosure so in order to better negotiate with the lender, make sure you hire a good Realtor with an extensive short sale experience. Visit www.yourCharlotteAgentS.com.
The negotiation is done through the loss mitigation department and might take several weeks if not months to get the lender to approve a short sale. Very often, borrowers have a first and second mortgage, that is, a primary and a secondary lien holder on the property. In this case, the process is even more complex requiring the short sale to be approved by both lenders.
I recently read an article stating that in general, "short sales are wrongly portrayed as difficult to complete, or morally questionable; however, when the value of a home has fallen dramatically and the debtor has limited assets, short sales are the most feasible option". If you think you can benefit from a short sale, here are a few steps to help you successful complete the process.
•1. Hire a Realtor with short sale experience to list your home for sale on the Multiple Listing System. Visit www.soto-ferreira.com for more information.
•2. Give your realtor an authorization letter allowing him/her to negotiate with the lenders on your behalf.
•3. Cooperate with your Realtor by promptly providing all the documentation required by the lenders. The documentation package will usually slightly vary from lender to lender; however, the basic required documentation includes the following: a detailed hardship letter written by the borrower explaining the reasons for default on the loan, tax returns for the last 2 years, bank statements for the last 3 or 4 months (varies from bank to bank), a listing contract if the house is listed with Realtor, an offer on the property with a preliminary HUD. The documentation might be submitted without an offer; however, most banks will not start the process until an offer is submitted by a qualified buyer.
Once the documentation is submitted to the bank, it might take several weeks until the bank responds. A good Realtor will communicate with the lender on a regular basis at least twice a week and closely follow up on any new update. For more information on short sale, listed homes, charlotte market, FSBO, home prices, find a buyer's representative, list your home for sale, preferred lenders, lower interest rate programs, W-7 opportunities for first time buyers, and more real estate articles, visit www.YourCharlotteAgentS.com or www.sot-ferreira.com. Be part of our blog and let us know how we can better help you when it comes to any of your real estate needs.
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Active Realtor in Meclenburg county and surrounding areas. Fluent in Spanish and Portuguese. My most important goal is to provide high quality real estate services to every one of my clients.
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