2/16/2011
5 Steps for a Successful Short Sale
By: Richard A. Wamsat III
Lenders and the federal government, prompted by the sheer volume of loan modification and short sale requests, have overhauled their systems and programs, making the foreclosure avoidance process much easier than in the past.
If you are considering short selling your home to avoid the financial and emotional fallout of foreclosure, you should be aware of the five steps you should take to increase your chances of a successful transaction.
First, do you qualify?
You must:
1. Have a verifiable hardship, like divorce, unemployment, reduction of hours or salary, medical bills, or relocation
2. In most cases you must be in a position where you cannot meet all of your monthly bills.
3. Be insolvent (you have no cash or assets that can be sold to pay down the mortgage), or headed towards insolvency
If you meet these qualifications, follow these five steps to a successful short sale:
1. Contact me so we can identify your servicer, fill out a short sale packet for the lender, and assemble all the required information needed to list your home for sale
2. Gather financial information (i.e., tax returns, bank statements, pay stubs) from at least the last three months
3. Keep your house in showcase condition for showings, and make as many repairs as necessary and that you can afford
4. Expect the lender, junior lien holders, and private insurance companies to request more paperwork, and try to gather requested information quickly to ensure transaction efficiency
5. Set realistic expectations and work with me, the lender, and the buyer to the satisfaction and benefit of all parties involved
For more information about how the short sale process works, or about any other foreclosure alternatives you may qualify for, call me today. I can help you alleviate the burden that the threat of foreclosure brings, and we can develop a strategy to help you breathe a little easier. I can be reached directly at (209) 613-4092, or you can fill out the contact form below or on
www.ForeclosurePreventionOption.com.