A short sale is a payoff to the lenders for less than the amount owed on the total balances of all mortgages.
A short sale requires the lender’s approval (any lender that is getting “shorted”), so it’s usually more complicated and takes longer than a standard sale.
Do you remember all the paperwork required when you first applied for a loan? That is exactly the same paperwork that is required for a short sale. In addition, the lenders will need to see some extra paperwork. In a nutshell, the paperwork required by most lenders is:
• Income tax returns and W-2 or 1099 from most recent 2 years
• Most recent pay stubs x 1 month–4 months
• Most recent checking account statements x 2 months — 4 months
• Most recent savings account statements x 2 months — 4 months
• Most recent IRA, 401 K, etc. statements x 2 months — 4 months
• Hardship letter (written in your own words, — tell the lenders exactly why you cannot make the payments—whether it is job loss, hours cut, divorce, payment increase, medical problems, etc.)
• Financial Statement Most lenders will require you to fill out a complete financial statement, where you will list all your assets (houses, properties, IRA, 401 K, checking accounts, savings accounts, etc.) and bills owed (all mortgages, credit card debts, student loans, all other debts & liens, etc.)
Tom and Barbara (not their real names) called me just the other day and wanted me to do a short sale on their home. They were referred by a very happy client whose short sale I had just closed. However, there were huge differences. Tom and Barbara lived in a home (NOT the short sale property) that had over $100,000 of equity in it. I advised them not to do the short sale on the property that they had just moved from. I told them that I’d make money, but that I did not think that a short sale was in their best interests. Keep in mind that the lender’s job is to mitigate (or reduce) the amount of loss that they are experiencing. Therefore, their job is to get as much money out of you, the Seller, as possible. If you have a lot of other assets, like other homes, particularly with a lot of equity, you may want to think twice about doing a short sale on an investment property. You don’t want to have your assets as a big fat target for the lender! Every time you talk to the lender, the conversation usually starts out saying, “We are advising you that we are a debt collector, and any information that you give us may be used to collect a debt.”
I’ve counseled many people against doing short sales for the above reasons. Yes, I’ll make money on it, but it may not be in your best interest to do a short sale. Again, I am not an attorney. This is not to be construed as legal advice. Always get advice on your particular situation from your tax expert and your attorney for tax and legal implications of a short sale.
Great information. I now understand what short sale really means and that I should seek help from professionals.
More than likely, you’re not going to find a ldener in this economy unless you have at least 20% to put down. A year or two ago, you would have been okay but not now. More than likely another bank will loan out to that credit score .but again only with a lot of cash down. More than likely, you’ll end up with an FHA loan if you get approved .here’s their website. It’ll help you find out what you need to qualify. Good luck.
People who default on mortgages they can afford to pay are savvy about credit and tend to have better credit histories than other defaulters, new research shows.FICO
You know what, I’m very much inliecnd to agree.
A wondreufl job. Super helpful information.
Superb publish, I seriously wait for up-dates from you.
Comment Not often do I encounter a weblog that’s both educated and entertaining, and let me tell you, you have hit the nail on the head. Your idea is outstanding; the problem is something that not sufficient people are talking intelligently about. I am very pleased
Check that off the list of tihngs I was confused about.
faxless payday advnace are obtainable right over the internet. Believe it or not, it’s one of the least difficult things that you have got to actually do. The internet industry for a fax free paycheck loan is big and additionally there are quite a few possibilities to come upon those terrible providers. Because of this, do your research and then insure that you simply find a very good direct paycheck loan company available.
Hey, youre the goto expert. Thanks for hanngig out here.
faxless payday advance are great choices, it’s not a scam nor has it been an undesirable preference to acquire. However, how a lending pattern should go will most likely count on the debtor. If you are intelligent in spending all of your funds so if you’re persistent by paying your service fees so therefore fast pay day loan could remain affordable and will also be of advantage for you personally.
You are trying to prenvet inquiries on your credit report thus reducing the possibility of lowering your credit score. If your credit report is pulled by several lenders in a short period of time this will not happen.You may do what you are proposing and give each lender a copy of the credit report you obtained. Make sure that your credit scores are on the credit report and if you are married make sure they are merged credit reports. You really need not go to several lenders and shop around as most of the gurus tell you, about 2-3 will do. Make sure you get a Truth in Lending from each. You are interested in the APR that each will be charging. The APR will tell you the cost each lender is charging you to process this potential mortgage loan.There are many things you should do, but the first thing you should do is contact a mortgage broker that does FHA mortgage loans and get pre-approved. This is the first step. Once you have your pre-approval then contact a real estate agent to look at house based on what you are qualified to buy.This pre-approval will tell you the amount of house you are qualified to purchase as well as the interest rate, monthly mortgage payments and other necessary things you need to know about your mortgage.I hope this has been of some use to you, good luck. FIGHT ON
Good insights! I have been searching for something like this for a long time now. Many thanks!
Admiring the persistence you put into your site and in depth information you provide. It’s good to come across a blog every once in a while that isn’t the same outdated rehashed information. Wonderful read! I’ve bookmarked your site and I’m including your RSS feeds to my Google account.
Go to court and ask Go to court and ask the Bank to prducoe the NOTE! When they can’t prducoe the NOTE (because they monetized it. Converted it to money.) the case will be dismissed! You don’t have to repay a dept when the lender has been restored. By monetizing the NOTE the bank was restored. Why did the bank do that? To have their cake and the principle and interest paid in each month too (aka Greed). Was this answer helpful?