It seems that everyone knows someone who is facing losing their home to foreclosure. It can also be said that if you know a homeowner in foreclosure, the chances are their lender has told them that a short sale is the strategy to avoid losing the home to foreclosure.
While short sales can help homeowners avoid losing their home to foreclosure, it is a very complicated process and one that should not be attempted by the inexperienced.
If you are a homeowner who is facing foreclosure, a short sale might be for you. However you will need to be open, honest, diligent, cooperative, and you must comprehend that the following 5 tips are vital to your short sale being approved by the bank:
1. While you may be able in some instances to persuade a mortgage company to work with you, the intelligent homeowner knows that they may not be well versed in short sales and should let those who are trained in the market handle the short sale. Whether an experienced real estate agent, title processor or attorney, make sure the person managing your short sale really is knowledgeable in regards to the short sale process.
2. Make sure you stay actively involved and you cooperate fully with the timely submission of forms and other paperwork as may be needed by the lender. This includes that you, not your agent or advisor, but YOU write a clear and compelling Hardship Letter. Having someone else write your hardship letter may be the reason that your short sale request will be turned down.
3. Make sure you know what is expected of you. The bank is going to want a comprehensive short sale package and that more than likely includes a full financial forensic picture complete with bank accounts, tax returns and more. Your failure to give the bank this information may get your short sale request rejected.
4. The bank lent you money and they have every reason to collect. You have the obligation to reveal your assets and to liquidate them to reduce what you owe them. You cant ask them to take less while you are cruising around town in your Porsche. It just does not work that way. You must be ready to show a reason you are unable to pay them back (i.e. show a hardship.
5. Make sure you don't dilly dally until its too late before you request a short sale. Most homeowners don't do anything or simply wait too long to act. No real estate agent or attorney is a magician. They need time to make the short sale work. If you want to save yourself from enduring a foreclosure on your home then you must act in a timely fashion.
Short sales can take as long as 6 months to get accepted. These are just 5 simple strategies you can implement to give your short sale request the best chance for approval. This is not an easy process for lender or homeowner and your ongoing cooperation can mean the difference between a successful short sale or your home being sold at the Courthouse steps.
Whatever you do, take some action. If you want to try to manage a short sale on your own, some lenders are now letting homeowners do just that. If you want to find out more information about how short sales should be properly executed please visit our short sale information resource center for videos and tips as to how to successfully complete a short sale.
By thoroughly comprehending the short sale process you will be better educated to talk about things with your lender and you'll be more aware to spot inadequacies and mistakes in the process with any Realtor that you may choose to hire to represent you.
If you're a Realtor reading this, you too may want to check out our short sale information. It will help you learn how to successfully execute short sales and generate higher commissions.
While short sales can help homeowners avoid losing their home to foreclosure, it is a very complicated process and one that should not be attempted by the inexperienced.
If you are a homeowner who is facing foreclosure, a short sale might be for you. However you will need to be open, honest, diligent, cooperative, and you must comprehend that the following 5 tips are vital to your short sale being approved by the bank:
1. While you may be able in some instances to persuade a mortgage company to work with you, the intelligent homeowner knows that they may not be well versed in short sales and should let those who are trained in the market handle the short sale. Whether an experienced real estate agent, title processor or attorney, make sure the person managing your short sale really is knowledgeable in regards to the short sale process.
2. Make sure you stay actively involved and you cooperate fully with the timely submission of forms and other paperwork as may be needed by the lender. This includes that you, not your agent or advisor, but YOU write a clear and compelling Hardship Letter. Having someone else write your hardship letter may be the reason that your short sale request will be turned down.
3. Make sure you know what is expected of you. The bank is going to want a comprehensive short sale package and that more than likely includes a full financial forensic picture complete with bank accounts, tax returns and more. Your failure to give the bank this information may get your short sale request rejected.
4. The bank lent you money and they have every reason to collect. You have the obligation to reveal your assets and to liquidate them to reduce what you owe them. You cant ask them to take less while you are cruising around town in your Porsche. It just does not work that way. You must be ready to show a reason you are unable to pay them back (i.e. show a hardship.
5. Make sure you don't dilly dally until its too late before you request a short sale. Most homeowners don't do anything or simply wait too long to act. No real estate agent or attorney is a magician. They need time to make the short sale work. If you want to save yourself from enduring a foreclosure on your home then you must act in a timely fashion.
Short sales can take as long as 6 months to get accepted. These are just 5 simple strategies you can implement to give your short sale request the best chance for approval. This is not an easy process for lender or homeowner and your ongoing cooperation can mean the difference between a successful short sale or your home being sold at the Courthouse steps.
Whatever you do, take some action. If you want to try to manage a short sale on your own, some lenders are now letting homeowners do just that. If you want to find out more information about how short sales should be properly executed please visit our short sale information resource center for videos and tips as to how to successfully complete a short sale.
By thoroughly comprehending the short sale process you will be better educated to talk about things with your lender and you'll be more aware to spot inadequacies and mistakes in the process with any Realtor that you may choose to hire to represent you.
If you're a Realtor reading this, you too may want to check out our short sale information. It will help you learn how to successfully execute short sales and generate higher commissions.
About the Author:
If you're an agent, make sure that you can properly represent a homeowner in foreclosure. Learn the correct way to perform Short Sales.
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