Falling seriously behind on your mortgage payments? If you think you can no longer catch up, a good option you can take to stop foreclosure is to sell your house fast. In certain cases, a short sale is the way to go. This is when your lender allows you to sell your property at a price that is less than your mortgage balance, then they take the loss.
To sell house fast is really easy for some people. For instance, if you sell your house for $200,000 while still owing your lender $245,000, the company will take the loss of $45,000 and you won't need to repay it. A short sale is good because you can dispose of the property faster since you could price it lower than its current market value. The process, however, is not that simple.
First thing you'd like to do is to call your mortgage lender and tell them that you've been having difficulty making your payments, and that you would like to ask if you could make a short sale. Usually, you would be asked to write a formal letter where you explain your circumstances, and how they have made it hard for you to meet your mortgage obligations. Know more about foreclosure stripping here at http://en.wikipedia.org/wiki/Foreclosure_Stripping.
For example, if it's because of a job loss or illness in the family, state it in your letter. If your salary has been reduced or if you have been reassigned as a part-time employee, indicate this in your letter as well. Make sure you include financial documents where you can prove your claims. These might include recent payslips, income tax returns, etc.
Once they receive your documents, your lender will review them and decide whether or not you really can't afford to make your payments as you claim. If you are able to convince them, they will approve a short sale as this is often a more efficient and less expensive route compared to foreclosure.
As soon as you get your lender's approval, look for a real estate agent who has experience with short sales. This professional must also have knowledge of your market and the price range that can be considered competitive enough.
When you get offers, send them to your lender. Remember, it's not for you to decide if an offer is good or not. You still have to secure the company's approval before you can go on with the sale. An offer that is too low would translate to a great loss for the lender, which means they're probably not going to accept it. In this case, the buyer will have to make a higher offer.
There can never be any assurance, however, that your lender will take an offer, and this is the reason short sales are often a complicated process. Nonetheless, you'd like to keep working with your real estate agent and, of course, your lender, until you can assign a closing date, if ever the lender accepts an offer. When this is done, the Freedom House Buyer will sign documents and settle closing fees before he can be legally considered as the new owner of your home.
To sell house fast is really easy for some people. For instance, if you sell your house for $200,000 while still owing your lender $245,000, the company will take the loss of $45,000 and you won't need to repay it. A short sale is good because you can dispose of the property faster since you could price it lower than its current market value. The process, however, is not that simple.
First thing you'd like to do is to call your mortgage lender and tell them that you've been having difficulty making your payments, and that you would like to ask if you could make a short sale. Usually, you would be asked to write a formal letter where you explain your circumstances, and how they have made it hard for you to meet your mortgage obligations. Know more about foreclosure stripping here at http://en.wikipedia.org/wiki/Foreclosure_Stripping.
For example, if it's because of a job loss or illness in the family, state it in your letter. If your salary has been reduced or if you have been reassigned as a part-time employee, indicate this in your letter as well. Make sure you include financial documents where you can prove your claims. These might include recent payslips, income tax returns, etc.
Once they receive your documents, your lender will review them and decide whether or not you really can't afford to make your payments as you claim. If you are able to convince them, they will approve a short sale as this is often a more efficient and less expensive route compared to foreclosure.
As soon as you get your lender's approval, look for a real estate agent who has experience with short sales. This professional must also have knowledge of your market and the price range that can be considered competitive enough.
When you get offers, send them to your lender. Remember, it's not for you to decide if an offer is good or not. You still have to secure the company's approval before you can go on with the sale. An offer that is too low would translate to a great loss for the lender, which means they're probably not going to accept it. In this case, the buyer will have to make a higher offer.
There can never be any assurance, however, that your lender will take an offer, and this is the reason short sales are often a complicated process. Nonetheless, you'd like to keep working with your real estate agent and, of course, your lender, until you can assign a closing date, if ever the lender accepts an offer. When this is done, the Freedom House Buyer will sign documents and settle closing fees before he can be legally considered as the new owner of your home.