The reality is that not all borrowers can pay their mortgage on time. There are some who can’t make payments several times and that will eventually make the lender put the property up for foreclosure. And if you don’t want to lose your property because of a foreclosure, then a short sale can be a good option. In a short sale, the borrower and the lender should make an agreement that they will sell the property. Yet it is important that the value of the property is less than the amount of the current mortgage.

Not sure if a short sale is right for you? Contact us and we will provide you with a free professional evaluation, help you see all available options, and even help you take the necessary steps.

Using Short Sale to Prevent Foreclosure

It was quite difficult for a bank or a lender to approve a short sale in the early days. But with the changes that take place in the present market, they find short sale a good solution. It is not only the borrowers who can take advantage of the short sale because lenders will also benefit from this process. They can get a greater amount of money that what they obtain if they will sell the house following a foreclosure. They can also prevent spending for substantial expenses.

The Process of Short Sale

Getting the approval of the lender for a short sale is easier if you can provide them proof that you are going through a financial hardship, your monthly income is insufficient, and you have no other assets that you can use to settle the mortgage. This will make you become qualified for a short sale and you can do the next step.

There are important documents that you have to submit to your lender for a short sale. Once you have presented the following documents to the lender, then you will more likely free the property from foreclosure.
• Agreement of Realtor Listing
• Confirmation that will allow your realtor to know information about the process
• Hardship Letter
• Tax returns for 2 years from parties involved
• 2 months payment for stubs of all parties
• Account number of your mortgage with a note of default
• Another account number if ever that you have your second mortgage
• Letters from your lender showing your unpaid mortgage
• Bank statements for 3 months
• Worksheet of Financial information
What to Expect from a Short Sale

In a short sale, you have to prepare yourself of spending time waiting for the lender to approve your proposal. Even if you have already found a buyer, the consent of the lender is strictly required. As a result, there would be a possibility that you will lose a buyer for the property. Though it is quite risky for you to consider this solution, still you cannot deny the fact that it can help you stop foreclosure. You just have to be knowledgeable on how the process works so it would be easier for you to convince the lender to agree for a short sale. You also have to inform the lender right away about your financial situation because they know the best solution that can help you prevent foreclosure.

If you need help going through these steps, or seeing if there are better options, contact us by filling out the form on this page or calling 512-271-5044. Our services are always free.