How TO Get A Short Sale Offer
Short Sales are a complicated and confusing real estate transaction for homeowners. One of the keys to closing a short sale is having an immediate offer to begin the process.
We have a list of common short sale FAQs to clear up some issues for homeowners. We also have a tip on how to get an immediate offer on any short sale property
QUESTION: What is a short sale?
ANSWER: A short sale is when your Lien Holder, such as your lender, agree to accept less than you owe in order for you to sell your home. They agree to accept a payment at a discount of the mortgage debt owed.
QUESTION: Is a short sale a good option to sell my home?
ANSWER: Well, there are a few things to consider. It starts with: Do You Qualify?
Here are the three basics to see if you can seek a short sale to avoid foreclosure.
1. No Equity - The value of your home is less than what you owe.
2. Can’t Afford Mortgage - Just having a home with no equity is not enough. If you can make the payments the lender will not approve the short sale.
3. Financial Hardship - You must show the lender that you have a financial hardship and can no longer make the current mortgage payments. Some call it a reverse mortgage application.In other words, when you applied for the mortgage you had to show how you can afford the monthly payment. With a Short Sale, you have to show you CAN’t afford the payment.
QUESTION: Will I receive any financial proceeds for the sale of my home?
Answer: If you are trying to sell and asking the lenders to accept a short sale offer then you will not see any proceeds for the sale. The lenders will realize a loss.Sometimes the lender is dealing with a very significant financial loss and they will insist that no proceeds from the sale go to the homeowner.
QUESTION: Who qualifies for a short sale?
ANSWER: If you have a legitimate financial hardship and can’t make your monthly payment then you probably qualify for a short sale. However, each Lender and Loan Type come with a different set of specific guidelines.
QUESTION: How will a short sale impact my credit score?
ANSWER: This is different in each case. Sometimes the most credit damage comes from many months of missed payments.Each missed payment adds up. Each missed payment is another negative mark on the credit score. These missed payments can add up to a larger drop on your credit score than the actual short sale
Pages: 1 2
Tags: Home, home answer, lien holder, payment, property question, Question
Related Articles:
