How Short Sales Can Save You From Foreclosure

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Facing foreclosure?

As bad as things can get, know that there is an option if you’re facing this situation.

It’s called a short sale.

With a short sale, you’ll be able to avoid foreclosure and save your credit from the heavy hit it would get normally under a foreclosure. You’ll be able to live in your house for free until you’re able to sell it and the lender will pay your closing costs. The lender will even pay your Realtor’s commissions in most cases too!

Keep in mind though, it’s not easy to sell your house through a short sale. A lot of steps need to be taken. But it can be done! You definitely need a solid team of professionals on your side to help through the situation.

In a short sale, the bank is accepting less than the total amount due on the loan. Not all lenders will accept this, but some will, so it pays to research this.

First, call up your lending institution. You’re going to have to have major persistence in this, because it may take you a while to get in touch with the person who handles short sales in the bank. Remember to get in touch with the actual decision-maker, not just the “short sale department”!

Prepare a hardship letter. This is YOUR plea to the lender to accept the short sale. Remember that the person reading this is a human just like you, with emotions. So make sure to appeal to their sympathy and be honest and upfront with why you couldn’t make those payments.

Prepare necessary paperwork. This can include your purchase agreement, listing agreement, copies of bank statements, proof of income, proof of assets, letter of authorization, and preliminary net sheet.

Have faith and persist in getting this handled. I know the situation is tough, so you need to keep on keeping on and persist in doing everything you can to get the situation right.

Michael Emilio

Real Estate and Small Business Blog