Holicent
VIP Contributor
Handling a short sale of a property can be a complex process, but the following steps can help guide you through the process:
Contact your lender: The first step in a short sale is to contact your lender and let them know that you are unable to make your mortgage payments and are considering a short sale. They will typically assign a representative to work with you.
Hire a real estate agent: It's a good idea to hire a real estate agent who has experience with short sales. They can help guide you through the process and make sure that all the necessary paperwork is in order.
Gather documentation: The lender will require documentation such as financial statements, proof of income and employment, and a hardship letter explaining why you are unable to make your mortgage payments.
List the property: Your real estate agent will list the property for sale at a price that is approved by the lender. The goal is to sell the property for enough to pay off the outstanding mortgage balance.
Negotiate with the lender: Once an offer is received on the property, the lender will review the offer and may require additional documentation or negotiation before approving the sale.
Close the sale: Once the lender approves the sale, the property will be sold and the proceeds will be used to pay off the outstanding mortgage balance. Any remaining proceeds will be returned to the homeowner.
Keep in mind that short sale process can take several months and it's important to be patient and persistent throughout the process. Also, it's worth noting that even though a short sale can help homeowners avoid foreclosure, it will still have a negative impact on their credit score.
Contact your lender: The first step in a short sale is to contact your lender and let them know that you are unable to make your mortgage payments and are considering a short sale. They will typically assign a representative to work with you.
Hire a real estate agent: It's a good idea to hire a real estate agent who has experience with short sales. They can help guide you through the process and make sure that all the necessary paperwork is in order.
Gather documentation: The lender will require documentation such as financial statements, proof of income and employment, and a hardship letter explaining why you are unable to make your mortgage payments.
List the property: Your real estate agent will list the property for sale at a price that is approved by the lender. The goal is to sell the property for enough to pay off the outstanding mortgage balance.
Negotiate with the lender: Once an offer is received on the property, the lender will review the offer and may require additional documentation or negotiation before approving the sale.
Close the sale: Once the lender approves the sale, the property will be sold and the proceeds will be used to pay off the outstanding mortgage balance. Any remaining proceeds will be returned to the homeowner.
Keep in mind that short sale process can take several months and it's important to be patient and persistent throughout the process. Also, it's worth noting that even though a short sale can help homeowners avoid foreclosure, it will still have a negative impact on their credit score.
