A short sale is when a lender accepts a discount price on a mortgage to avoid a possible foreclosure auction or bankruptcy. For some clients, selling their home is actually the relief that they need. After a review of your situation, it may become obvious that you can no longer afford your home.
A short sale benefits both you and your lender. For the homeowner, short sales help protect your credit and minimize your losses. For lenders, short sales provide value by eliminating the costs associated with foreclosure, such as the legal fees lenders pay to foreclose, the taxes and home owners’ association dues and the loss related to the Real Estate market dip in home prices.
- Hardship Letter
- Income & Expenses (last two months)
- Listing Agreement (typically six months)
- Listing Price & History
- Broker contact Information
- Proposed HUD-1 Statements
However, the short sale process can be complicated and time-consuming and it isn’t for every homeowner. Alternatives to short selling are:
- Deed-In-Lieu of Foreclosure
- Forbearance Agreements
- Mortgage Modification
At the Law Offices of Korte & Associates, we not only understand short sales, but all of the potential solutions available to you and which may best serve you.