How to Do a Short Sale on My Home

A Short Sale Realtor in Arizona allows homeowners who are underwater on their mortgages to sell their homes for less than what is owed on the mortgage. The transaction saves the lender from the more costly and time-consuming process of foreclosure and may benefit both parties.

Lenders are increasingly interested in helping financially distressed homeowners stay in their homes by working with them on a short sale, especially if the homeowner is participating in the Making Home Affordable program. To be considered for a short sale, the lender needs to see a clear and compelling case from the borrower as to why they cannot afford to pay their current mortgage payment. This will require a hardship letter detailing financial constraints and corroborating documentation, such as termination letters, tax returns, W-2s, bank statements and proof of income.

How to Do a Short Sale on My Home: A Step-by-Step Guide

For buyers interested in a short sale, it is important to get preapproved for financing before making an offer. Many lenders can review a credit score and financial documents and issue a preapproval letter within one day. Buyers will also need to be prepared to buy the property “as-is” since the lender will not usually pay for repairs or renovations.

Real estate agents who specialize in short sales can help sellers and buyers navigate the process more smoothly. However, since a short sale requires negotiating with a mortgage lender, it’s wise for a seller to have an attorney and CPA on their side as well.

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