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Mortgage Short Sale

A mortgage short sale involves selling real estate for less than is owed on the home loan. This type of transaction can be a Godsend for homeowners who have become delinquent with their payments. Lenders can initiate foreclosure proceedings once borrowers are 15 days delinquent on their mortgage note. When borrowers cannot make their payment, they should immediately contact their lender to discuss available options.

A mortgage short sale must be approved by the lender. Short sales are usually handled by the bank's loss mitigation department. Employees of this department are known as loss mitigators. Their primary duty is to work with homeowners who are struggling to make ends meet and help them develop a repayment plan.

Today, loss mitigators carry an overwhelming caseload and have little time to develop working relationships with borrowers. When working with loss mitigators it is crucial to be organized, prepared and polite.

Unfortunately, not all loss mitigators are pleasant people. I have talked with several who go above and beyond to help borrowers prevent foreclosure. I have also worked with loss mitigators that I refer to as "pit bulls" because they thrive on bullying borrowers who are already down and out.

The threat of foreclosure and lack of income creates a tremendous level of stress. The majority of homeowners who have fallen behind in their mortgage payments are victims of unfortunate circumstances. Many have lost their jobs. Others are coping with a chronic illness or caring for a spouse or child who is terminally ill.

Experts claim nearly 50-percent of foreclosures stem from major illness. When the primary wage earner is unable to work due to illness or injury, medical expenses can quickly deplete their savings account. For millions of Americans, one catastrophic illness can force them into bankruptcy or result in foreclosure.

One alternative to foreclosure is obtaining a mortgage short sale. Lenders require borrowers to submit a short sale packet consisting of financial documents, detailed list of income and expenses, previous years' tax returns and a short sale hardship letter. The letter of hardship could very well be the most important document you will ever write.

Obtaining short sale approval is difficult. It is estimated that only 10-percent of short sale requests are approved. Although loss mitigators can offer some assistance, the borrower is responsible for the bulk of the work. This includes locating a realtor who possesses experience with short sales.

Lenders require short sale real estate to be sold within a certain timeframe. In most cases, the property must be sold within 90 days or less. When lenders authorize a short sale, they provide the borrower with guidelines which must be adhered to. If the borrower defaults on the agreement, the lender can commence with foreclosure proceedings.

If you are facing foreclosure and feel there is no way out, realize there is always a solution to every problem. I specialize in helping distressed homeowners negotiate mortgage short sales and work with individuals just like you on a daily basis. I understand the stress and embarrassment of your situation and will be happy to address your concerns and answer your questions.

Realize time is not on your side. When it comes to foreclosure, banks aren't playing around. They either want their money or they want the house back. Don't waste another minute. Contact me today so we can discuss your options. Get started by entering information about your property via the "we buy houses" form.

Afterwards, take time to visit our mortgage short sale article library. Here you will find dozens of articles packed with information and resources on short sales, foreclosure, loss mitigation and bankruptcy.