What is a short sale?
This is a commonly asked question amongst homeowners struggling to pay their mortgage payment.
A short sale is the sale of real estate in which the proceeds from the sale fall short of the balance owed on the mortgage loan. The short sale process is complex and requires working with a licensed real estate agent with experience in short sales and authorization from the originating mortgage lender.
The term 'short sale' means the bank allows borrowers to sell their property for less than the balance due on the loan and borrowers cannot own assets which could be used to repay the debt.
Mortgage lenders usually require borrowers to submit a short sale hardship letter describing events which caused delinquency of the loan. The letter of hardship is an important element of obtaining short sale approval and borrowers should take time to carefully prepare it. Mortgage lender loss mitigators prefer that a hardship letter includes a detailed timeline of events, along with any action taken to overcome financial challenges. Lenders are more apt to grant approval to borrowers who lost their job or encountered medical problems than to those who engage in frivolous spending.
The short sale process typically takes between 30 to 90 days to complete. Borrowers will undergo a financial audit and are required to submit a myriad of documentation to the loss mitigant.
The benefits of a short sale is that the "short payoff" is typically reported as paid in full/settled or paid/settled for less than the amount owed. Some qualified homeowners may even qualify for a move-out incentive of up to $1000-$3000.
Military service members who receive permanent change of station orders can be considered eligible for financial hardship, which gives additional flexibility in a short sale. It eliminates the 55% or greater monthly debt-to-income ratio requirement if:
CBSHOME has designated a specialist, Kathy Cox, to assist with this transaction. Following are some of the benefits to you of utilizing Kathy's knowledge and experience:
Real Help Is Free! Avoid Scams.
Foreclosure rescue and mortgage modification scams are a growing problem that could cost you thousands of dollars - or even your home.
Scammers make promises that they can't keep, such as guaranteeing to "save" your home or lower your mortgage, usually for a fee, often pretending that they have direct contact with your mortgage servicer - which they do not.
Tips to Avoid Scams:
Our staff is professional, discreet and courteous. We will keep you informed throughout the process and assist you in collecting the information that will be required to gain approval from your lender(s).
Kathy Cox - Short Sale Specialist
Having lived her entire life in the Omaha and Papillion, Kathy Cox certainly knows the area. She’s lived on acreages and private lake communities to everywhere in between. North, south, east and west, she can bring her personal experience to the table to assist you.
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