February 21, 2011

What is a short sale and how does it work?

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What is a short sale and how does it work? How a short sale works begins with cooperation from all the parties. The team players begin with the seller, attorney, the broker and the lender. A bank short sale is when the selling price is less than the mortgage amount owed. The seller’s lender must authorize the sale of the property. The best scenario is only having one mortgage on the property. Which means only one mortgage company to deal this. The “how to short sale” starts with a discussion with your lender about having to do a bank short sale. Because of the tax implications you may want to speak with your accountant too. It’s important you have a knowledgeable team of representatives assisting you. I have teamed up with a wonderful attorney who specializes in helping those in a short sale position. We then turn them into a short sale success for all the parties involved. Each lender has their own short sale package that they want the seller to prepare for them. Which typically includes a hardship letter, taxes returns, bank statements, stock information, income, outgoing debt (credit cards, car payments etc.)

Short sales take more time processing and having your short sale package in order, current and ready to go when you get your offer is critical. Because most lenders are consistent on what they are looking for I am able to prep my sellers and help them prepare their short sale packages. If you have any questions or need help, please contact me directly.

Posted by:  Mary Petersen

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