A SHORT SALE is a sale of real estate, where the proceeds from selling the property will fall short of the balance owed to the bank. The homeowner cannot afford to repay the mortgage's full amount and the bank agrees to accept less than the amount owed on the mortgage.
The bank will require the following items before processing your short sale:
- Authorization (Allowing us to speak to your bank)
- Hardship Letter (Letter explaining the situation that lead you to have to sell)
- Financial Worksheet (Most forms are specific to and provided by the bank)
- Copies of last 2 Pay Stubs
- Copies of last 2 Bank Statements
- Copies of last 2 years' Tax Returns
- IRS Form 4506T (copy of tax return transcripts)
- Type of mortgage (FHA, Conventional, VA, etc)
- Who your Mortgage Investor is
- If you have Mortgage Insurance
- The amount of loss the bank will be taking (There are extra level of Quality Control)
This article has talked about some important aspects on short sale . First of all, the definition of short sale has been given. Thereafter, the different documents required for short sale have been given. Finally, different factors than can affect the average time of short sale have been mentioned. These are quite useful information. Here it is to be mentioned that through short sale you can avoid the serious consequences of foreclosure. Foreclosure affects your mortgage approval chance very seriously. This in fact hurts your chances to get approved for a mortgage loan for several years. On the other hand, the negative effects of short sale are much less.
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