SHORT SALE: CONVINCING THE LENDER

QUESTION: How do I go about selling as a Short Sale?

CRIBBIN REALTY'S ANSWER: First, the bank will have to be convinced that the seller deserves to be approved for a short sale. They will need to disclose to the mortgage lender financial hardships, including layoffs,loss of jobs, divorce, medical issues. Some or all of the following would be required: hardship letter signed by the homeowners, 2 yrs tax returns, recent pay stubs, bank statements, authorization for the negotiator to discuss the mortgage with the lender. Lenders also request listing history, recent sold properties, repair estimates and photos, second mortgage payoffs if any, and other lien information. Lenders will furnish their requirements as to seller' assets, liabilities, income, and obligations. Each Lender has different parameters, a different short sale policy. The contract must not be contingent upon the sale or closing of another property, also the seller cannot do owner-financing or carry-backs. the Lender often times verifies with the buyers lender that they are pre approved with no contingencies. Also, properties with multiple mortgages, 2nd liens are not the best short sale candidates but it can work.

Short sales may take longer to close than more conventional sales, so plan accordingly. However, it is well worth it. Again, the alternative - foreclosure.

Remember, if you have any real estate related questions or a topic you would like for me to discuss, email them to mike@cribbinrealty.com.