How do I convince my bank to short sale?
How do I convince my bank to short sale?
Ideally, it’s best to choose someone who’s familiar with the local market and specializes in short sales. You’ll need to include a letter that notifies the bank of who your agent is and authorizes them to make decisions on your behalf. Your package should also document your financial reasons for seeking a short sale.
How do you write a short sale?
A Step-By-Step Guide to the Real Estate Short Sale Process
- Get a Property Valuation Analysis.
- Get a Hardship Letter.
- Contact the Lender for a Short Sale Application.
- Prepare the Sales Contract.
- Assemble the Short Sale Package Together.
- The Loss Mitigator Reviews Your Short Sale Package.
What is a short sale letter?
A short sale approval letter is a letter that a lender issues to the seller if a short sale offer is approved for less than the amount the borrower owes on a mortgage. It’s issued by the lender at the end of a short sale to demand the “short” loan payoff in return for releasing the lien on the property.
How do you write a hardship letter for a short sale?
In the body of the letter, state the hardship that led you to fall behind on your mortgage payments. Explain to the lender what happened and why it was beyond your control. Keep your explanation brief. The goal of the hardship letter is to explain to the lender the nature of your hardship.
What should I offer on a short sale?
It’s best to strike a balance between what’s a good deal for you and what’s reasonable for the lender. A price that’s 5% to 10% below market value is typically a good number to put on the table. Venturing further down could be dangerous territory.
What is the first step in a short sale transaction?
The first step of any short sale deal is to find a distressed property. There are a number of ways you can market to these types of owners. Even though short sales have been popular for a few years now, not every homeowner is aware of all their options.
How low can you offer on a short sale?
5% to 10%
A price that’s 5% to 10% below market value is typically a good number to put on the table. Venturing further down could be dangerous territory. One last factor to consider when finalizing a short sale offer is interest rates, especially if they are unusually low at the time the offer is submitted.
Why would a lender approve a short sale?
Key Takeaways. A short sale usually indicates a homeowner in financial distress, a real estate market in the doldrums, or both. The short sale must be approved in advance by the mortgage lender. The former owner may be required to pay the shortfall or the debt may be forgiven.
What should a hardship letter say?
Tips for Writing a Hardship Letter
- Keep it original.
- Be honest.
- Keep it concise.
- Don’t cast blame or shirk responsibility.
- Don’t use jargon or fancy words.
- Keep your objectives in mind.
- Provide the creditor an action plan.
- Talk to a Financial Couch.
What are examples of financial hardship?
Some examples of events that a lender may consider to be a financial hardship include:
- Layoff or reduction in pay.
- New or worsening disability.
- Serious injury.
- Serious illness.
- Divorce or legal separation.
- Death.
- Incarceration.
- Military deployment or Permanent Change of Station orders.
