span your lender to accept 'payment in
class="cap">R eal full without pursuit of any
estate short sales are deficiency judgment'. What this
occasionally offered by banks as means is the lender agrees to
an alternative to foreclosure. accept a lesser amount and will
Depending on the circumstances, not pursue you for the
lenders may agree to accept a difference.
lesser amount than is owed on the
Some lenders require you to
mortgage note. This type of pay the difference between the
transaction is typically reserved short sale and actual loan
for Borrowers who are seriously amount. Depending on how the
delinquent on their mortgage contract is written, you may also
payments. have to pay income tax on the
In essence, short sales offer difference. Short sales are not
homeowners an opportunity to sell without risk and you must read
their property at a reduced rate the fine print carefully. At
and walk away from the property. minimum, retain the services of
In order for this type of an attorney to review the
transaction to fully benefit the documents before signing on the
Borrower, it is crucial for short dotted line.
sales to be properly negotiated.
If you are facing foreclosure,
For this reason, it is important a short sale could be the
to hire the services of a solution to your problem. Using
specialist who is well-versed in this method, you can sell your
negotiating real estate short house, salvage what is left of
sales. Otherwise, it could your credit and avoid
literally cost you thousands of foreclosure. However, not
dollars.
everyone will qualify for short
The primary goal of short sales. Certain requirements must
sales negotiation is to convince be met including your ability to
show just cause for your 5. Signed sales contract and
financial hardship. proof of buyer's financing
It's also important to keep in
Additional short sales
mind that today's real estate requirements state you cannot
market is in a slump, so it won't have any equity in your home and
be easy to sell your home. This must owe more on the loan than
isn't to say it won't happen, but the home is worth. As you can
you need to be prepared in case see, short sales can be
your home doesn't sell. complicated and complex. Hiring a
Oftentimes, lenders require a professional, who can assist you
specific amount of time for you in organizing and negotiating a
to sell your home. If it doesn't short sale offer, can save you
sell, they move forward with time and money, as well as reduce
foreclosure. Others require that your stress.
you already have a Buyer in place
Short sales can be a
before allowing you to submit a life-changing option for many
short sale package.
people. It's not easy to throw in
Although requirements for real the towel and walk away from your
estate short sales vary from home, but sometimes you have to.
lender to lender, most will There is no other choice. Take
require the following time to learn about the pros and
information:
cons of short sales. Talk to your
1. Documentation of income and lender to see if you qualify or
expenses including pay stubs, if they are willing to accept a
receipts, bank statements, tax short sale package from you.
returns
If you meet the
2. Financial Hardship Letter qualifications, but your lender
3. Realtor listing documents refuses to accept an offer from
4. Estimate Settlement Statement you, seek out private real estate
(HUD-1) investors who specialize in short
sales. Through their network of
investors and banks, they can type="text/javascript">
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About the Author:
Simon Volkov is a private Real Estate Note Investor who provides solutions to individuals facing foreclosure, short sales and other financial hardships. If you need to sell your house fast or looking for alternatives to help you avoid foreclosure visit www.SimonVolkov.com today.
Article Tags: sales, sell, short
