5 Steps For Successful Short Sale:

Many lenders – including the federal government have changed their programs and systems making foreclosure avoidance much easier than it has been in the past.  Their action to improve their systems and programs was prompted by the volume of short sale requests and loan modification requests.  It was also prompted by lenders desire to NOT foreclose on property; lenders do not want to own property.

If you are considering a short sale to sell your home to avoid the fallout of foreclosure, you should be aware of the five steps for a successful short sale transaction.  Taking these steps increases your chances of a successful short sale transaction.

FIRST – do you qualify for a short sale?

1.   Hardship – need a verifiable hardship such as unemployment, medical bills, divorce, or forced relocation for employment. 

2.    Monthly short fall – does your monthly income fall short of covering your monthly expenses?

3.   Insolvency or heading towards insolvency.  This means you have little to no cash or liquid assets that can be sold to pay down the mortgage.  Most lenders will not include your retirement assents in determining your eligibility.

Assuming you qualify for a short sale – there are 5 steps for a successful short sale transaction.

1.    Let’s Talk.  Contact us and we can identify you loan servicer, fill out a short sale packet for the lender and fill out all of the necessary paper work to list your home for sale.

2.   Gather all of your financial information – from at least the past 3 months.  Be sure to include all of your bank statements, pay stubs.  Be prepared to continually provide updated statements throughout the process.

3.   Keep your house in showcase condition for ALL showings.  We will work together at the time of listing to determine what needs to be done to list your house – in terms of inspections, appraisals and repairs.  Even if you do not have the financial means to make repairs – it is critical that the home show as best as it can and remains clean and neat throughout the process.

4.   Expect more paperwork requests for the lender(s), junior lien holders, and private mortgage insurance companies.  Gather the requested information quickly to ensure your file continues to move forward in a timely manner.   You may be asked to fill out specific forms for different parties.  Completing the forms quickly and completely is important in closing your short sale.

5.   Set realistic expectations.  Every lender is different and every deal is different.  Be ready to work and cooperate with us in selling your house, the lender(s) and the attorney.  We are all motivated and focused to achieve your ultimate goal and SELLING the house so you can move forward.

For more information about how the short sale process works or about any other foreclosure alternatives you may qualify for – call us or email us today.  We can develop a strategy to help you breathe a little easier and put these 5 Steps to a Successful Short Sale to work!

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