Short sales can be the solution to mortgage problems for many homeowners. The process can be easy, especially if you get adequate help. There are several steps to take before you have completed the sale, but if you know how to tackle them you can get through them just fine. Here is a basic run-down of what it takes to get a short sale accomplished.
1. Listing the House Your house will be listed at its market value. You will need to be ready to show it until an offer is made. With a short sale representative helping you, there will probably be an offer soon. Such an expert is likely to have contacts that are interested in buying short sale houses. One thing you will not have to do is fix up the house. In a short sale, the house is sold as-is.
2. Making Contact The homeowner will either have to enlist a representative short sale expert to contact the mortgage lender, or do the job himself. Once this contact is made, the rest of the process can go very quickly as long as all the requirements are met.
3. Valuate the House The mortgage lender will need a professional opinion about the market value of the house. They will order an appraisal to establish this figure. The appraisal can be a Broker’s Price Opinion or can come from an independent appraiser. The bank will use this information in setting up the terms of the short sale.
4. Filling Out and Filing the Paperwork A great deal of paperwork will be required to complete the application process. The homeowner will have to file documents that show his financial situation and need. These might include pay stubs, tax returns and recent bank statements.
To further display your need, you will need to file a financial hardship letter that describes your problems with paying your mortgage. You will also have to fill out financial worksheets that outline your income and expenses.
5. Negotiating with the Mortgage Lender It can be very difficult for a lay person to negotiate with a mortgage lender. It can also be difficult to get the best outcome. Remember that the bank does these deals every day, and as a non-professional you have rarely or never encountered this situation before. You may have to deal with offers and counter-offers going back and forth for a while if you are working to get the best deal. An expert can help guide you through this process if you choose to use one.
After the short sale negotiations, a deal will be struck and the sale will go through. The entire short sale process can take only a few weeks, or it can take many months. In the end, if all has gone well, you will be able to put your mortgage troubles in the past and move on with your life.