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Mortgage Short Sale

A mortgage short sale is one option available to homeowners facing foreclosure or unable to continue making their mortgage payments. With the current economic turmoil, millions of Americans are struggling to make ends meet. Many must choose between paying their mortgage and putting food on the table. Once they become delinquent on their mortgage note it can be next to impossible to get back on track.

The first step to obtaining a mortgage short sale is to contact your lender. Short sales are usually handled through the bank's loss mitigation department. A loss mitigator will be assigned to handle your case and will work with you throughout the process.

Most lenders require borrowers to submit a short sale hardship letter detailing events which caused them to fall behind with their mortgage payments. This could very well be the most important letter you will ever write, so take time to be thorough, yet concise. Develop a timeline of events and any actions you have taken to reduce expenses. Do not exaggerate or provide false information.

Each lender handles short sales according to their established protocol. However, borrowers are required to provide evidence they are financially insolvent and unable to repay their debt. Most mortgage lenders require borrowers to submit extensive financial documentation including pay stubs, detailed list of income and expenses, credit card and bank statements, and previous years' tax returns.

Another important element of mortgage short sales is the HUD-1 Settlement Statement. This document is used to show lenders how much they will receive from the short sale. Many borrowers have two or more mortgage loans. The HUD-1 statement must reflect how much each lender will be paid and include a breakdown of all costs associated with selling the property.

Once borrowers obtain short sale approval, they must locate a realtor willing to work on their behalf. Many realtors shy away from short sales because they consist of an enormous amount of work.

By law, realtors must place the homeowners' best interests ahead of their own. If the only way to close the short sale is for the realtor to give up their commission, then they must do so. Few people want to work for free, so locating a realtor to orchestrate a mortgage short sale can be challenging.

One way to bypass working with a realtor is to locate a real estate investor who specializes in short sales. As a private investor, I seek out short sale homes and work with borrowers throughout the process. I buy houses with cash in order to expedite the sale and improve the chances of the borrower obtaining short sale approval.

When borrowers have a buyer in place, banks are considerably more receptive to entering into a short sale agreement. It is estimated only 10-percent of short sale requests are approved. If you would like to increase your chances ten-fold, we need to talk.

Our team of short sale specialists has engaged in nearly 400 successful transactions. We boast an 80-percent success rate, which is unprecedented in today's turbulent housing market. We are particularly interested in properties located in California, Arizona, Nevada and Washington. However, we consider all properties presented to us, regardless of location.

If you need help obtaining a mortgage short sale, submit information about your home via the "we buy houses" form. There is no cost or obligation for us to review your property. You have nothing to lose and everything to gain.

As you know, time is of the essence. Short sales are complex and time-consuming. We can help you cut to the chase and stop foreclosure. If you don't take action today, chances are high you will lose your home. Don't waste another second. Submit your property information today so we can get the ball rolling.

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Published on June 21, 2009 at 04:22 AM | Comments: 1

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I guess restructuring your mortgage is a good way to avoid foreclosure.

stop foreclosure | June 29, 2009 8:00 PM


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