Are you facing a Short Sale?
There is no time to wait!
What is a Short Sale?
A Short Sale occurs when a financially insolvent homeowner who is facing foreclosure sells his home for less than what is owed to the lender. The lender accepts the sale as payment in full for the loan.
This helps the homeowner to avoid foreclosure and the tremendous hit to their credit rating. Short Sales take time, attention to detail and an understanding of property owner and lender options.
8 Steps to a Short Sale:
(1) Gather Information, (2) Open Communication, (3) Develop the Proposal, (4) List the Home, (5) Obtain the Offer, (6) Submit the Offer, (7) Negotiate the Deal, (8) Close the Deal.
Your Short Sale & Foreclosure Specialist will begin asking you for documents, records, expenses and information necessary to complete the lender proposal. The more information and communication, the better opportunity for results.
Qualifications for a Short Sale
Before you eagerly climb aboard the short sale bandwagon, consider the following to determine whether you may qualify for a short sale. If you cannot answer yes to all four requirements, you may not qualify for a short sale.
The Home’s Market Value Has Dropped
Hard comparable sales must substantiate that the home is worth less than the unpaid balance due the lender. This unpaid balance may include a prepayment penalty.
The Mortgage is in or Near Default Status
It used to be that lenders would not consider a short sale if the payments were current, but that is no longer the case. Realizing that other factors contribute to a potential default, many lenders are eager to head off future problems at the pass.
The Seller Has Fallen on Hard Times
The seller must submit a letter of hardship that explains why the seller can not pay the difference due upon sale, including why the seller has or will stop making the monthly payments.
A few examples that do NOT constitute a hardship are:
1. Bad purchase decisions. Blowing your paycheck on a home theater system with surround sound does not qualify as a hardship.
2. Unhappy with the neighbors. Even if the neighborhood has changed, that will not qualify as a hardship.
3. Buying another home. The lender will not care if you have decided the home is no longer suitable for you or your family.
4. Pregnancy. Increasing the size of your family or starting a family is not considered a hardship.
5. Moving into an apartment. If you decide to move out of your home, that is a lifestyle decision and not a very good reason to abandon your home.
DISCLOSURE: RSVP Homes Realty is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.