Do You Meet The Requirements for a Short-Sale?
By Sandy Flores
Special to Excelsior
If you have made many attempts to get a loan modification and did not reach any reasonable agreement that suits you, or maybe the change is not the process that you want or is suitable for you. It has options to avoid foreclosure. One option is a short sale or “short sale.” The sale of short-running”, known in English as “short sale” occurs when the balance you owe the bank is higher than the current value of the property on the market today, including all of the expenditure of sale.
If you meet the requirements, banks could approve the short sale, agreeing to accept less than the full balance of your debt. Note that not all lenders will accept short sales or discounted payoffs, especially if I had more financial sense to exclude.
Among the basic documentation that your financial institution will require to begin the process of short sale or short sale is considered:
Federal taxes for the last two years
The W-2 forms for the past two years
Two months of your most recent bank statements
Pay stubs or employer checks the most recent month
State personal finance: Include all your income and all household expenses, in addition to all their financial obligations.
Charter commonly known as “Hardship Letter”, which will detail the reasons why you can not continue payments.
The methods of the short sale are a bit complex, so it would be advisable to be assisted by a real estate professional who is experienced with extensive knowledge in short sales.
Short selling is a process that takes time, so patience but perseverance is recommended.
If the bank believes that its financial situation is very difficult then yes you could approve the short sale. If this is the case it is very important that you read and fully understand the terms of the short sale approval granted and issued by the bank as well as the expiration date thereof, and the costs are included in the approval all amounts at closing match those required by the bank initially, and not be in trouble at the last minute.
Also keep in mind that the bank grant and approve the short sale or short sale deficiency that exists for the difference owed reflected after the sale could be excluded in its entirety, thus signifying the cancellation of mortgage debt. Take immediate action if you are going through this situation.
Time passes very quickly! Not only have less time for reaction but also less possibilities and solutions to work with them and avoid repossession of your property. The short sale is a complex process and be well informed and advised it is your responsibility. See if you have more questions a professional real estate specialist in short sales so you can guide you in detail and make this confusing process more accessible and streamlined process.