Short sale may seem a viable option to prevent foreclosure. However, this process can be exhausting and frustrating at the same time. The waiting process is long and hard. However, people still go through this option to save their credit reputation and to cut the years on when the next allowable mortgage can be made.
Most homeowners have encountered problems in requesting for short sale, especially in locating the mitigating loss department. Most people in charge of granting short sale are assigned here and this sector is not visible in banks. Sometimes, you would end up being passed around. You could end up calling one person to another and that could be an irritating. However, you have to do this to get in touch with the right person.
Most lending institutions are skeptical in granting short sale request. They know that their losses can be too much. That is why they need to qualify the homeowner and evaluate their short sale package carefully.
Requests are rejected when lenders can see an opportunity for you to pay the outstanding loan. Moreover, the process would take a long time if there were documents missing upon evaluation. Sometimes, lenders would have to request a BPO or Broker’s Price Opinion to verify the property’s value.
Therefore, if you want to avoid these problems, make sure your short sale package is complete. It should also have thorough information that could prove your incapacity to pay.
Below are the documents needed for short sale evaluation:
• A letter containing your request for short sale and its underlying reasons.
• A sad letter stating your hardships that made you grab this option.
• An authorization letter that gives the lender the right to disclose any personal information in the process of making inquiries.
• A financial statement declaring your income and expenses for selling the house.
• A bank statement showing your recent bank transactions (like withdrawal and deposits).
• A Comparative market analysis that proves the house value has dropped below its market value.
• The purchase agreement containing details offered by the buyer.
• The listing agreement that proves you have already agreed to put up your home for sale.
• Other documents that can be used to corroborate your hardships, W2 forms and tax returns.
Additional Tips
You must ensure that all information provided is factual since lenders would really take time investigating about your current standing. Aside from that, you must know that lenders are human too. They are capable of understanding difficulties. Therefore, your letter of hardship should show how difficult your circumstance is. Doing this would allow you to transmit the sadness to the lender and this could be a big help to have your application considered.
You also have to make constant follow-ups to ensure that the lender gets what they need. Communicating with them can also help you find answers to your questions with regards to the whole process.
You can turn around the difficulties involved in short sale by simply understanding the process. It takes time, patience and knowledge to close a short sale.
For more short sale properties in Arizona, find the best from these sites
Chandler AZ Houses for Sale,
El Mirage AZ Real Estate and
Fountain Hills AZ Homes
