Are you “sdrawkcab” in your mortgage? Being backwards or upside-down in a mortgage is a simple reality in today’s market for many people.
With the boom, high risk loans and weakly founded appraisals at an end coupled with the economy many homeowners are in the same boat looking at negative equity. If you’re not going to sell this may not be a big deal as the market will return but if you’re looking to sell or simply can not afford that adjustable mortgage you may need to look at a short sale.
Although short sales are becoming more popular and understood I still get questions every week about them and see many agents as well just doing them poorly to say the least.
Common Questions On Short Sales
Q: If I list my property with a short sale is there a way I could get some monies back at closing to help me get on my feet?
A: No. The bank is taking a loss and to be “legal” any proceeds involved in the transaction must be on the HUD or final paperwork so if the bank sees any monies going back to you they would not sign off.
Q: What documents will the bank require for a short sale?
A: Documents will depend on the lender. Every bank is different although the most common short sale package will include:
Hardship Letter
Last 2 year tax returns
Lat 2 months bank statements
Purchase agreement
Listing agreement
HUD or estimate of proceeds
Personal finance statement
More may be required as well
Q: If I do a short sale, how much will I have to pay to sell my home?
A: Nothing. The short sale costs are absorbed by the bank approving the sale. All commissions, taxes, tile and escrow fees are covered in the short sale approval process. You could also include some verbiage in your contract along these lines; “seller’s agreement to sell is subject to approval by existing lender of a short sale at no cost to seller.”
Q: If I am current with my payments will my lender consider a short sale. I am going to say – maybe. Now many agents may see a hard yes or a hard no but coming from experience and doing many successful short sales for my clients I can tell you banks give clearly mixed signals on this one. The best thing to do is get an offer as soon as you can no matter what situation you are in or have a experienced short sale agent like us get your information to the bank so they can tell us what else they may require.
Q: Do lenders approve all short sale?
A: No.
Q: If I have 2 loans can I still do a short sale?
A: Yes. We can work with both lenders to put together a short sale. In the end neither lender wants to own another home through foreclosure.
Q: I have not been making payments and there was a recent sheriff sale, can I still do a short sale?
A: Depends. It depends on what type of loan was on your property to start with as well as the specific banks protocol on it. Contact me for me details on that one.
If you’re in a situation you need to sell and do not want a foreclosure we can help. We understand it’s a tough situation to be in and nothing you intended but we can help. Give me a call today at 612-282-7653 or contact us here and we will set up a meeting at your convenience to go over all your questions and help you move forward with a short sale.
Here is what our most recent short sale client had to say about working with us:
A short sale can be a very stressful, difficult time. In the past, being a responsible home owner we were unfamiliar with such a process.
However, with the economy greatly effecting our income it has taken it’s toll. You have no idea how fearful and emotional a walk like this is until it hits home. Looking back one would never ever think it would reflect on us like this. We searched hard and deep. Foreclosure was at our door. We made the decision to list our home with Derrick Monroe. Our house was sold on a short sale.
Having no clue what that process was or how it would effect us, Derrick Monroe supported us.
It was a difficult and embarrassing to be in this situation but he never judged us. Just like in our case, he can work with you, access the situation and advise you of your best action then proceed accordingly. Our sincere thanks to Derrick Monroe.
Sincerely,
Brice & Jenna