Short Sale Process

A short sale is deemed to be the best course for a homeowner when personal hardships arise and they can no longer make the mortgage payment. This process can be a slow time-consuming and intensive process. There are many reasons for delays but most commonly are:

1. Investor and or mortgage insurance provider must be contacted if the servicer is not delegated to approve a short sale
2. If there are any other mortgage liens on the property
3. If a homeowner files for bankruptcy and the Trustee must provide court documents approving the sale
4. The homeowner has not provided the correct documentation to the servicer/bank to prove a hardship

When presenting a hardship package to the servicer/bank make sure you review all your financial documents to ensure you provide a complete understanding of your financial circumstance changes (hardship). Below are expected items to send:

1. A specific letter explaining what has changed financially since your loan was originated. Keep it specific, factual and that you are willing to cooperate in the process.
2. Prepare to send any current income related documents: one full month recent pay stubs, tax returns, w-2's, any legal court documents that show income, alimony or child support
3. Provide all current ligquid asset's: include all pages of the documentation (even the blank pages)

Please keep in mind the goal of a short sale is to help you avoid foreclosure if you can no longer stay in your home due to hardship. The short sale process may be intense but it is because you are asking to settle your obligation for less then you owe.

Following simple tips like these can help shorten the short sale process which can be long enough. The key to a "less" stressful short sale process is to always work with people that understand the process.