What's a short sale

When a mortgage foreclosure looms in the horizon, and loan repayment and remortgage plans are no longer viable options, it's time to learn how to prepare a short sale package...
And, what is a short sale? A short sale is the selling of a house for an amount that is lower than the balance left on the mortgage loan. It is a better alternative to foreclosure for both the lender and the borrower because the lender avoids the exorbitant fees that a foreclosure entails and the borrower lessens the negative impact on his credit score, compared to the effect of foreclosure on credit score.

When a mortgage foreclosure looms in the horizon, and loan repayment and remortgage plans are no longer viable options, it's time to learn how to prepare a short sale package.

Simply put, a short sale package is a bunch of documentation papers that are required to initiate a short sale including but not limited to an authorization to release form, past 2 years of tax returns, IRS form 4506T, 2 most recent pay stubs, 2 most recent bank statements, a hardship letter, a financial worksheet, lien worksheet, sales contract, listing agreement, pre-approval letter for the buyer, a HUD closing statement, current mortgage statements, the Making Home Affordable Affidavit, etc.

A short sale is an agreed upon option by both the lender and the borrower but, if the sales proceeds do not cover the total remaining balance of the loan amount, the borrower is still obliged to pay the remaining amount. However, in most cases lenders forgive borrowers of the deficiency amount, providing a huge advantage to the option of a short sale.

Not all debtors are eligible for a short sale of their house. Most lenders approve short sales if 1) the owner of the house has undergone a hardship, such as a divorce, loss of employment or a medical emergency, 2) the loan amount is more than the value of the house, 3) the owner is incapable of paying the current monthly amortization and, 4) the owner is not eligible for a repayment or remortgage plan.

In preparing a Short Sale Package or presentation you may run across Short Sale Terms that you've never heard of before. It's a normal reaction to say this is way to hard, and move on to the next deal.

Believe me when I say there are profits in doing Short Sales.

I'm happy to help investors with no obligation on their part to help educate them on all of their foreclosure and short sale options

There is a good article here that explains short sales.

When a mortgage foreclosure looms in the horizon, and loan repayment and remortgage plans are no longer viable options, it's time to learn how to prepare a short sale package...
And, what is a short sale? A short sale is the selling of a house for an amount that is lower than the balance left on the mortgage loan. It is a better alternative to foreclosure for both the lender and the borrower because the lender avoids the exorbitant fees that a foreclosure entails and the borrower lessens the negative impact on his credit score, compared to the effect of foreclosure on credit score.

When a mortgage foreclosure looms in the horizon, and loan repayment and remortgage plans are no longer viable options, it's time to learn how to prepare a short sale package.

Simply put, a short sale package is a bunch of documentation papers that are required to initiate a short sale including but not limited to an authorization to release form, past 2 years of tax returns, IRS form 4506T, 2 most recent pay stubs, 2 most recent bank statements, a hardship letter, a financial worksheet, lien worksheet, sales contract, listing agreement, pre-approval letter for the buyer, a HUD closing statement, current mortgage statements, the Making Home Affordable Affidavit, etc.

A short sale is an agreed upon option by both the lender and the borrower but, if the sales proceeds do not cover the total remaining balance of the loan amount, the borrower is still obliged to pay the remaining amount. However, in most cases lenders forgive borrowers of the deficiency amount, providing a huge advantage to the option of a short sale.

Not all debtors are eligible for a short sale of their house. Most lenders approve short sales if 1) the owner of the house has undergone a hardship, such as a divorce, loss of employment or a medical emergency, 2) the loan amount is more than the value of the house, 3) the owner is incapable of paying the current monthly amortization and, 4) the owner is not eligible for a repayment or remortgage plan.

In preparing a Short Sale Package or presentation you may run across Short Sale Terms that you've never heard of before. It's a normal reaction to say this is way to hard, and move on to the next deal.

Believe me when I say there are profits in doing Short Sales.

I'm happy to help investors with no obligation on their part to help educate them on all of their foreclosure and short sale options.

Saso Joveski

bratangl, A short sale typically occurs when the owners have fallen behind on their payments and they need to sell their home, but the current market value isn't enough to cover the costs to pay off the loan and the fees associated with selling their home.  The owner (and sometimes their agent) usually works with the bank to make arrangements for a short sale, which means the property will be listed and sold for less than what is owed in order to avoid the house being foreclosed on.  It does affect the owner's credit, but not as negatively as a foreclosure would.  Hope this information helps....

Chanda