You are unable to keep up with your house payments because of a loss of income. Or you need to move to another town and cannot sell your home for what you owe on it. You have talked to your mortgage company and they do not offer any other options that work for your situation. So now you are thinking that a short sale may be your best option. So how do you go about this?
First, you need to hire a qualified realtor to list your home as a short sale. The realtor will do a comparative market analysis (CMA) to find a fair price for your home and then will find you a buyer.
Here is what your mortgage company will want you to submit for the short sale:
- A Letter of Authorization so that your mortgage company can talk to your realtor.
- The Listing Agreement and Purchase Contract for the sale of the home. Your realtor will provide this documentation.
- Estimate HUD 1 Settlement Statement. This is prepared by the title company and shows all the estimated charges and credits for the home sale.
- Hardship Documentation. This is your part. Pay stubs, tax returns, bank statements, bills and a letter explaining your hardship are all included. The more you can show your hardship the better.
Make sure that if there are other liens on the home, they all approve of the short sale also.
Once the mortgage company receives all this documentation with your case number on every piece of paper, they will review it and let you know if they approve of the short sale. After this approval, the home can be sold and you have escaped foreclosure.
If you are unsure of this will work for you, give me a call and I will assist you with your real estate need.