If you are trying to stop foreclosure, you may have decided to try and do a short sale on your home. A short sale is where you make a request of to your lender, to sell you home at a price that is less than what you owe on the mortgage. Lenders usually agree to this procedure when they would rather take a small loss than go through the lengthy and costly foreclosure process.
If you want to have a good chance at convincing your lender to give you the option for a short sale there are some steps you can take to improve your chances. Read on if you would like to learn the steps to getting a short sale accepted.
Step 1: Talk To Your Lender’s Loss Mitigation Department
First call your mortgage lender’s loss mitigation department. This is so you can talk to them and put a feeler out to see how much they might settle for as a full mortgage payment. Do not talk to a customer service representative they won’t have the authority to work with you so it will just be a big waste of time, try to talk to some in charge or make an appointment to talk to someone high up in the bank. What your hoping for is that they will give you some sort of number on what they will settle for on your mortgage balance, you need this number so you know what you going to be trying to sell your home for.
Step 2: Write a Letter To Your Lender
Once you have talked to the right people and you get a sale price in mind put together a letter to your lender on why they should take the short sale. This is less of a proposal and more of story that includes why you are behind on your payments and how things don’t seem as if they are getting to get better any time soon. Concentrate on the facts of why you haven’t paid your mortgage, like if you were laid off or had a illness, be honest most of all.
Step 3: Consider Mention Bankruptcy To Your Lender
You may want to tell you lender that you are considering bankruptcy. Lenders do not want people to file bankruptcy because this slows down foreclosure proceedings for a while. With thought of bankruptcy you lender might be more willing to offer you up a short sale. This step may be a final option; you may not want to use it to early on.
Step 4: Consider Hiring A Real Estate Agent
You may want to get a real estate agent to work on your behalf with you mortgage company. Let the agent do some of the negotiating for you, most real estate agents are skilled in smooth talking and convincing people. They don’t have emotional attachment to the home, therefore it may be easy for the to convince people how easy it will be to sell.
Step 5: Gather Your Financial Documents
Get all of your financial documents related to your income bills and assets gathered. You will need these to send to your lender as well as your last 60 days of pay stubs and several months worth of bank statements from any accounts you have. You should also send last years w2s and or tax returns. Keep in mind the lender will be looking through every thing to see what happened and why you started missing payments.
Finally keep in mind that sending in a short sale and get approved will take time and patience. The lenders are busy and get many requests from people for help. Give yourself at least 60 to 90 days until the settlement date.
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