Eight steps for Short Sales

A real estate short sale is when a lender agrees to sell the home at a price less than the mortgage amount. It's true that the lender as well as the seller faces loss but it's far too low than the foreclosure. Short sale is a deal which is to be finalized by lenders and nobody else. It depends upon the mortgage lender that he agrees on the deal or not. On most of the occasion the short sale turns out to be a good deal but there are some drawbacks as well. When a lender agrees to do a short sale in real estate it means that the lender is ready to suffer a little loss.

If you are going to buy a short sale then you must know that there are some drawbacks as well. For safety I project following points which a borrower should keep in mind:

1. Obtain a legal advice from a repudiated lawyers.
2. Call the accountant to discuss short sale tax ramification.
   

Although different lenders have different requirements but in all following points will be a great help for you:

1.Call the lender
You will be required to do half dozen phone calls before you find out who is responsible for real estate short sale. You will really have to work hard for the same reason.

2.Submit letter of authorization
A formal authorized letter will be required. The authorization letter should contain: buyer sellers name, the reason why seller is ready for short sale, his financial position, property address, loan reference number, your name, the date, your agents name and contact information.

3.Preliminary net sheet
This the total detail about the financial statement related to the property. You should specify the sales price which you are expecting, all the tax related documents, any liability which is left including real estate commission. You should make sure that the lender realized that a short sale should take place urgently.

4.Hardship letter and bank statement
You should prepare a document named hardship letter and make sure you let the lender know about your position. You should give the details of how you fell in this financial crisis. No lender is inhuman and will certainly understand if you will give reasonable reason. However criminal behavior will not be accepted by any lender. You are also required to give the bank statement which explains your worries.

5.Proof of income and asset
You are required to give the details of your income and you should also mention in detail if you have lost your job. Believe me you will really get sympathy from the lenders.

6.Comparative market analysis
You should specify the details of the market analysis and explain how you have faced loss as far as market is concerned.

7.Purchase agreement
You should also put forward the agreement which you have signed at the time of purchasing the property.

Short sale is an alternative of foreclosure and you should keep this in mind. It is for your help. Whenever you get caught in the trap of foreclosure you can really go for short sale. If you follow the points which I have mentioned above you will realize that the foreclosure problem will never trouble you. You will also be able to save your credit score.