What Is A Short Sale: Important Information For Homeowners

Thousands of homeowners are facing foreclosure or bankruptcy for a variety of reasons

, from unemployment to divorce. One solution to avoid these proceedings and pay their debts is conducting a short sale of their property. But what is a short sale, how does it work and what should you expect? Here are some useful facts about short selling a property that every homeowner should know.

Firstly, a short sale is the process of selling a property at a lesser amount than its market value with the aim of settling part of the amount owed by the homeowner to the creditor, which is usually a bank or financial institution where the homeowner got their mortgage loan. In the short sale agreement, it is possible for the creditor to accept the amount gained from selling the property in order to settle the debt and avoid other additional fees to both parties, and in an especially good agreement, the homeowner can be freed of their obligations to pay the remaining balance to the lender.

Since a short sale is much better for most homeowners than a bankruptcy or foreclosure, many lenders have been swamped with short sale applications. Real estate statistics show that only 5-10% of all the short sales get closed, leaving many more pending and meeting expiration dates.

In order to have a successful short sale process, you must be prepared to find the best real estate agent and financial advisor to improve your chances of closing the deal in the shortest time possible.

In order to have a successful short sale process, you must be prepared to find the best real estate agent and financial advisor to improve your chances of closing the deal in the shortest time possible. Anyone applying for a short sale must prove that they are experiencing hardships that make it difficult to afford the home. The most common hardships include loss of employment, divorce, illness and relocation, all of which can impact your finances severely. A crucial part of what is a short sale is a hardship letter that describes your situation.

The process also includes many documents both to prove the hardships and to indicate your financial status. These include bank statements, pay stubs, tax returns, credit reports, as well as hospital bills, employment records and other papers that must accompany your hardship letter. One important thing here is to be as honest as possible and provide all required records to make it easier for the bank to approve the bid.

Do work with your real estate agent to get the right price for the property as this will attract the right buyers. Avoid prices that are too low or too high compared to the market prices as the lenders will also do their own appraisal of the property. The more realistic the price, the higher the chances of getting approval for the short sale and finding a serious buyer.

Essentially, getting organized, finding the right advice and being patient is what is a short sale is all about. Even though a short sale may negatively affect your credit report, it may be the best option when faced with bankruptcy or foreclosure proceedings.

by: kevinmiller

POST COMMENT

4 Tips To Choose The Right Fairco Sliding Doors System For Your Home Adding Hidden Cameras To Your Home Security System A Stainless Chimney Liner Keeps Homes Safe Cutting The Clutter Top Tips To De-clutter Your Home Now Export Car From Usa To Switzerland Sitting At The Comfort Of Your Home! Shop From Your Home With The Arrival Of Online Fashion Stores The Best Home Mortgage Rates Can Be Yours Christmas Has Come Early With Indigo Homes Westfield Gift Card Promotion Water Conservation Tips: Lower Water Usage In Your Home Port Washington Ny Real Estate- Artistic Homes Are Available Changing Climates Force Homeowners To Reconsider Their Hvac System Top Secret Tips For Decorating Your Home Like A Pro Save On Agent Fees When Selling Your Home