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Shortsales

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What is a short sale?
A short sale occurs when a homeowner sells their home at its fair market value and the lender accepts the net sales proceeds as full satisfaction of the homeowner’s mortgage. So, in addition to finding a buyer, you have to qualify for a short payoff with your lender.

Qualifications for a short sale
To qualify for a short payoff of your mortgage with most banks, you must:

  • be delinquent on your mortgage payments;
  • owe more on your mortgage than your property is worth; and
  • be unable to pay on your mortgage.

Required paperwork
Most lenders will require the following minimum documentation:

  1. Authorization to release information to your agent. This document gives your lender permission to deal with and furnish your mortgage information to your real estate agent, the first step in negotiations with the lender.
  2. A hardship letter. This letter explains your inability to make further payments on the mortgage.
  3. Recent pay stubs, bank statements and tax returns. These documents confirm details in your hardship letter.
  4. Proof of occupancy. For example, a utility bill in your name at the property address proves it is your principal residence and not a rental property.
  5. After your lender receives and reviews the completed documents, they will notify you whether they will consider a short payoff as full satisfaction of your mortgage.

These are just the basics: every short sale is different. Call me today and I can help you through the process!