Short Sale Home
A short sale home is a house that is being sold for less than is owed on the mortgage note. Borrowers facing foreclosure can sometimes engage in short sales with lender approval. The short sale process is pretty complex and requires a tremendous amount of paperwork, but can allow homeowners to walk away without owing additional money.
A short sale home isn't any different than other homes for sale. In fact, these properties can be quite profitable for real estate investors or buyers looking for a good deal. The downside of purchasing short sale homes is the transaction must be handled through the borrower's mortgage lender.
Lenders who engage in short sales turn delinquent accounts over to their loss mitigation department. A loss mitigator is assigned to assist borrowers in reconciling their account. When homeowners fall behind on their mortgage payments, lenders commence with the foreclosure process.
The first step involves sending a preforeclosure notice known as Lis Pendens. This gives the borrower time to devise a repayment plan and cure mortgage arrearages. The repayment plan is typically achieved through a loan modification.
Loan modification requirements vary by mortgage lenders. Some require the borrower to pay the full amount of delinquent payments. Others require a partial payment, while a few roll the arrearage to the end of the note; extending and permanently changing terms of the mortgage note.
If the borrower does not qualify for a loan modification, the lender might allow them to enter into a short sale. There are two types of short sales. The first is known as a Deficiency Judgment, which means the lender expects the borrower to pay the difference between the sale price and amount owed on their loan. This can amount to several thousand dollars.
Although a short sale affects the borrower's credit history, a deficiency judgment destroys their credit. The borrower will not be able to obtain a mortgage loan until the judgment is satisfied. If you have ever tried to repay $20,000 or $30,000 in debt, you know how difficult this task can be.
The second type of short sale agreement is known as Payment in Full without Pursuit of Deficiency Judgment. This means the lender will accept the sale price as payment in full and will not attach a judgment or come after you for the balance. Obviously, this is the preferred choice.
In order to obtain short sale approval, borrowers must submit a packet of information which includes a short sale hardship letter. This is perhaps the most important letter you will ever write and there are certain techniques which can help improve your chance of approval.
I've written the Short Sale Hardship Letter ebook course, which details every aspect of obtaining short sale approval. Experts claim only one of every ten short sale requests are approved. If you want to increase your chances of success, purchase the short sale course at www.ShortSaleHardshipLetter.com .
Currently, I am accepting a limited number of homeowners who are facing foreclosure and need to sell their property as a short sale home. Our team of short sale specialists has earned the reputation of being the best in the nation. To date, we have completed 390 successful transactions in California, Florida and Washington.
If you want to become part of this unique opportunity, take a few minutes and submit information about your property via the "we buy houses" form. I cannot guarantee you will be accepted into the program, nor can I guarantee we will buy your house or convince your lender to engage in a short sale transaction.
I can guarantee that I will review your information and contact you to discuss your situation. If we can offer a solution, we will do whatever it takes to help you obtain financial relief. You have nothing to lose and everything to gain. The sooner you enter your property information, the sooner we can have a discussion about what needs to be done.
Published on June 17, 2009 at 02:29 AM