One way to avoid foreclosure is through short selling. This process can be complex, so it’s essential to understand the basics before you get started. Here are five rules of selling short.
Although short sales and foreclosures differ, many people use the terms interchangeably. A short sale occurs when homeowners sell their homes for less than their mortgage balance. In contrast, a foreclosure occurs when a lender repossesses a home after the homeowner has failed to make mortgage payments.
The mortgage lender must agree to allow the transaction of a short sale. Their approval is required because the proceeds from a short sale won’t cover the amount due on the mortgage. They are giving up their right to repossess the property by agreeing to the short sale. I have a 99% success rate with all of my short sales. I have been completing short sales here in Las Vegas since 2006. Make sure you hire someone that knows the process, the in’s and out’s of it and can walk your through it!
To be approved for a short sale, a seller must demonstrate some kind of hardship to the lender. The lender will more likely agree to a short sale with proof of hardship. In some cases, a short sale is more attractive than going through the foreclosure process.
Financial documents can be a way to demonstrate hardship. You could persuade the lender with evidence of sudden unemployment or significant medical debt. The evidence is anything that indicates an inability to service the mortgage. I will help you complete this task as well as going over your financial statement that the lender will require from you.
It’s important to remember that the price of a home must be in line with the market value. Short sales often occur because the market declines and the home’s value has fallen accordingly. The buyer will not want to pay more simply to help you cover the remainder of the mortgage.
Once you have a buyer, you can submit the documents to the lender for approval. The lender will then review the package to determine whether or not they will approve the short sale. If you are not forthcoming about the status of your property, it may cause the transaction to be delayed or even canceled.
So, don’t give up if you find yourself in a difficult financial situation and your home is worth less than the mortgage owed. The short sale process can be complex, but our team at Urban Nest has the expertise to help you through every step. Be Sure to check out my short sale page for more information on the process: Las Vegas Short Sale Page
Are you considering buying or selling a home in the Las Vegas/Summerlin area? I’d love to help you! Please click here for my contact page, and I’ll reach out to you promptly.
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