A short sale is when the lender of a property allows the property to be sold for less than the amount due on the mortgage loan. Many times people will use the short sale process as a way to avoid foreclosure. The benefit to the short sale process is that it will allow the seller to avoid the credit damage that is associated with a foreclosure—something that will stay on a credit report for ten years.
Diverse Real Estate Management is a company that works with homeowners—just like you—who are looking to sell their property to get out from underneath their debt, especially with property values declining like they are today.
There are typical short sale requirements that are to be collected from the homeowner. These requirements include:
- A hardship letter that states what happened to cause you to fall behind on your mortgage, when it happened and what you are [trying] to do to fix the situation.
- A breakdown of all of your income and expenses [i.e. a financial worksheet].
- Your last month of pay stubs or a recent profit and loss statement if you’re self-employed. If, for any reason, you cannot provide either one of these documents you will need a signed and dated explanation of why.
- Your bank statements for the last two months.
- Purchase and Sale Agreement.
- Listing Agreement.
There are times when a lender will require additional information, but the requirements listed above are the most common. It is always important to keep all of your paperwork handy so that you will be able to provide it to your lender, if necessary. Once all of the documents are collected, the short sale process will be submitted to the lender. At this point, the short sale process will commence.
Please contact us today to learn more about the short sale process and how Diverse Real Estate Management can help you finally get out from underneath your debt.