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FOR SELLERS FOR BUYERS
In a short sale, the seller arranges with their mortgage lender to accept a price that's less than the amount they owe on the property. As part of this arrangement, the lender typically agrees to forgive the rest of the loan. As a result, the seller doesn't have to go though a foreclosure, the buyer picks up a property at a discount, and the lender avoids taking on the burden of unloading the property.
Who pays the expenses (commissions and closing costs)?
Fees are generally paid by the lender out of the sale proceeds making our service free of charge to you. Lenders are willing to do this because if they have to foreclose, they still would have to pay a broker and closing costs to sell the property.
What is required of me for a Short Sale?
1. Call the Lender(s), you can call the Customer Service Numbers on your Statement and ask for the “Loss Mitigation” department, most banks today would have the customer service reps handling the process and noting everything in the files until and even after a negotiator is assigned to your file.
2. You would need to submit Letter of Authorization to the Lender(s) as Lenders typically do not want to disclose any of your personal information without written authorization to do so. We will help you with this; the letter should include the following:
· Property Address
· Loan Reference Number
· Your Name
· The Date
· Your Agent's Name & Contact Information
3. Prepare a Hardship Letter; the sadder, the better. This statement of facts describes how you got into this financial bind and makes a plea to the lender to accept less than full payment. Lenders are not inhumane and can understand if you lost your job, have a serious illness or other setbacks that make it difficult to cover your expenses.
4. Proof of Income and Assets, It is best to be truthful and honest about your financial situation and disclose assets. Lenders may ask for the past two months of statements for savings accounts, money market accounts, any stocks or bonds, negotiable instruments, cash or other real estate or anything of tangible value. Lenders are not in the charity business and often require assurance that the debtor cannot pay back any of the debt that it is forgiving.
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