| In these tough economic times, many people consider | | | | a short sale. Some of these documents include: (1) |
| getting involved in a short sale of real property. | | | | preliminary net sheet, (2) hardship letter, (3) proof of |
| However, most do not understand what it takes to | | | | income and assets, (4) copies of bank statements, (5) |
| close short on a piece of property. The term "short | | | | comparative market analysis, and (6) letter of |
| sale" for real estate means that the sale proceeds are | | | | authorization. |
| less than the balance of the mortgage or mortgages | | | | The seller should contact a real estate agent, |
| for that real estate. It takes a lot of time and effort to | | | | accountant and attorney. Many agents will reduce their |
| accomplish a successful short sale. Cooperation and | | | | commission amount on a listing that needs to sell short. |
| hard work is needed. The seller and lender are both in | | | | Accountants can explain and go over the tax |
| tough positions. The seller can no longer afford their | | | | ramifications (which vary for each individual). Attorneys |
| home and can not pay the mortgage. The lender has | | | | can help negotiate with the lender and buyer, |
| no desire to take the home or go through costly | | | | determine if the loan qualifies for a deficiency |
| foreclosure proceedings. | | | | judgment, work within foreclosure proceeding, and |
| The seller has to start the ball rolling by finding the right | | | | close the transaction. |
| department and person within their lender to assist in | | | | Be aware that the lender is not in a hurry to agree to |
| this process. It takes many phone calls and letters to | | | | a short sale. The lender will take as much time as it |
| get a person with authority from the lender. Also, do | | | | wants and will periodically ask for more information. |
| not make the mistake of trying to go through the | | | | Lenders will only agree to a short sale if it makes |
| lenders mortgage work out department if you really | | | | financial sense. The buyer has to have a lot of |
| just need to get out of the property and mortgage. | | | | patience, be willing to cooperate with the lender and, |
| The seller has to provide the lender with many | | | | most importantly, have the money to purchase the real |
| documents before lenders even consider the option of | | | | property. |