Baltimore Short Sale

Preparing a short sale Package

A short sale is one of the most sought out way through which a homeowner can avoid having their home foreclosed. Given the many advantages that a short sale has over a foreclosure, most people usually prefer it. When opting for a short sale, the homeowner will need to understand that the lender is not obligated to accept a short sale proposal. Most homeowner’s find this very frustrating because of the endless negotiations which may take a lot of time. The lack of certainty as to whether the lender will accept one’s proposal is another factor that makes some people shy away from the whole process.

Although the lender may benefit from a short sale as compared to a foreclosure, it is usually necessary to convince them that a short sale is the best alternative that they have. It may therefore be necessary to convince them of various factors which will make you eligible for a short sale. It is also wise to know that the HAFA Program (Home Affordable Foreclosure Alternative) is a great benefit to you, the homeowner, and to the lender as well. Incentives given, once the short sale has made a successful closing and upon qualification, is beneficial for both parties, giving up to $3,000.00 CASH BACK for your relocation and up to $30,000.00.  Most lenders usually have various things that one must satisfy in order to qualify for the short sale. They may require you to prove that you have undergone some kind of hardship that has made you incapable of repaying the mortgage.

Preparing a good short sale packagewill make the whole process easier and less complicated. A good short sale package will make it easier for the lender to understand all the existing realities concerning your house and thus saving a lot of time which might have been wasted trying to explain everything. Having the facts and figures about the property already documented will also enable you to make better and convincing arguments that will persuade the lender to give you the permission to make the short sale.

The first document to be included in a short sale package is your hardship letter. A hardship letter is a document that must be contained in a short sale package. When writing a short sale letter, it is important to remember that the purpose of the letter is to explain the nature of the hardship that you, as the borrower, are facing and why a short sale is necessary. The letter should outline the nature of the hardships that the borrower is encountering and how they came about. Since its purpose is to convince, it should be written in a precise but compelling manner. Outlining the reasons why it is impractical for the borrower to continue holding onto the property is also an important element of a good hardship letter. Bank statements and recent pay stubs are also necessary when preparing the short sale package. Recent tax returns for the two years preceding the application should also be included.

A letter of authorization which should be properly signed by the owner of the home is another important document. A good letter of authorization should express the intention to give the authority to another person to deal with the property and should be clear and concise. A date should be included in the letter with a specific description of the property which is the subject matter of the short sale. It is also necessary to include the loan reference number so as to make it easy for the bank to find additional information, if need be, about the property. The names of both the owner and the agent should also be specified in the letter.

In a short sale package, a preliminary net sheet should always be included. This sheet is used to summarize all the financial information about the property and the short sale in general. A good preliminary should break down all the proceeds that are to be expected from the sale of the property and the accompanying expenses. Usually, the net amount should be negative, which indicates that there shall be no profit to be made by the seller in case the short sale is allowed.

Most lenders usually require the borrower to fill out a financial disclosure form which helps them to evaluate the financial position of the borrower and whether the short sale is really necessary. It is advisable that you be honest in making disclosures in the financial disclosure sheet because any signs of dishonesty my work to your disadvantage. In it, one should disclose his or her bonds, stocks, savings accounts and any other assets that they may have.

If you are looking for help on getting your Short Sale Package together, I strongly encourage you to contact one of our highly energetic and thoroughly trained Short Sale Specialist Realtors. Our services are 100% FREE for you and after all, we are on your side! Do not let a Foreclosure put a damper on your life, when a short sale can help you move on with your life so much quicker! Act now and contact us!