Have you fallen behind on your mortgage payments? Were you successful in negotiating a loan modification with your lender and find that you are still struggling to make that monthly payment? If the answer to any of these questions is YES then you are probably realizing that the best option you have to avoid foreclosure is a short sale.
How do you prepare for a short sale?
The first step in negotiating a short sale is to list the property for sale. Your lender requires that the property be listed with a Real Estate Brokerage as a condition to short sale approval. Why? Because they want to make sure the property was marketed properly to qualified buyers at the appropriate market value.
Next you'll need to gather all the necessary documents required for review. The documents needed are;
•· Last 2 year's income tax returns
•· Bank Statements showing activity for the last 60 days
•· Pay Stubs from the last 60 days
Lastly, you will need to compose a hardship letter where you will need to explain why you have fallen behind on your payment (job loss, medical issues, adjustable rate mortgages, market decline etc). Here's a tip; always conclude the letter with "please consider my request for a short sale as it is my last option to avoid foreclosure".
Follow these steps and you will be on your way to a successful short sale approval!
By the way,have you signed up to receive our Monthly Newsletter? Many people facing foreclosure have found it very useful in the past and hopefully you will too. Best of all, its Free and takes only a minute to register.
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