Short sale is a real estate transaction offered to homeowners facing foreclosure. When homeowners default on their mortgage note and are unable to become current, some lenders will allow the homeowner to sell their home for less than is owed on the mortgage note.
Short sale agreements are negotiated through the lender's Loss Mitigation Department. A Loss Mitigator is assigned to the borrower to oversee their account. A predetermined sale amount is agreed upon and when the home sells, the homeowner can walk away from the home without causing extensive damage to their credit.
Each lender's loss mitigation department varies in their short sale procedures. In order to determine if you qualify for a short sale, you will first need to contact your lender. More often than not, the loss mitagator will offer a variety of options to help save your home from foreclosure. Whenever possible, they will first attempt to provide a loan modification to help you become current on delinquent payments and keep your home.
Loan modifications can be arranged to suit your needs. This might include reducing or temporarily suspending your mortgage payments. When this occurs, the delinquent payments are rolled over to the end of the loan. The downside of loan modifications is you end up paying on the mortgage note for a longer period of time and will be charged additional interest on the loan.
Loss mitigators rarely offer short sale agreements unless all other options have been exhausted. Additionally, the borrower must meet certain eligibility requirements to qualify for the short sale. These requirements generally include:
1) The borrower must provide proof their home is worth less than the balance due on the loan. This can be accomplished by obtaining a list of comparable home sales in the area. Comp sheets can be obtained through Realtors or by conducting research via the Internet. Comparable sales should include homes sold in the area within the past six months.
Short sale agreements are negotiated through the lender's Loss Mitigation Department. A Loss Mitigator is assigned to the borrower to oversee their account. A predetermined sale amount is agreed upon and when the home sells, the homeowner can walk away from the home without causing extensive damage to their credit.
Each lender's loss mitigation department varies in their short sale procedures. In order to determine if you qualify for a short sale, you will first need to contact your lender. More often than not, the loss mitagator will offer a variety of options to help save your home from foreclosure. Whenever possible, they will first attempt to provide a loan modification to help you become current on delinquent payments and keep your home.
Loan modifications can be arranged to suit your needs. This might include reducing or temporarily suspending your mortgage payments. When this occurs, the delinquent payments are rolled over to the end of the loan. The downside of loan modifications is you end up paying on the mortgage note for a longer period of time and will be charged additional interest on the loan.
Loss mitigators rarely offer short sale agreements unless all other options have been exhausted. Additionally, the borrower must meet certain eligibility requirements to qualify for the short sale. These requirements generally include:
1) The borrower must provide proof their home is worth less than the balance due on the loan. This can be accomplished by obtaining a list of comparable home sales in the area. Comp sheets can be obtained through Realtors or by conducting research via the Internet. Comparable sales should include homes sold in the area within the past six months.
- Short sale is a real estate transaction offered to homeowners facing foreclosure.
- Short sale agreements are negotiated through the lender's Loss Mitigation Department.
- Each lender's loss mitigation department varies in their short sale procedures.
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