Short Sales Guide
Short sale is one way of saving a property from possible foreclosure. It occurs when the sale proceeds of the sold house is below the seller’s existing balance on the mortgage. Some lenders accept this short sale offer for practicality sake and to avoid tedious documentation and legal intervention.
Here are our guidelines for short sale:
Short selling may be the best option in saving the property but this is not a pleasant transaction to deal with. Aside from seeking legal advice as major task to do before closing a short sale transaction, property owner should also consult an accountant regarding tax ramifications. With these two major things, here are some of our guidelines that would help you in disposing or buying property through short sale.
1. Meet the lender and establish the terms and conditions covering the disposition of the property due for short sale. The lender, who lent money to the seller, should decide whether s/he is amenable to the value being marked on the property.
2. Prepare a preliminary property assessment reflecting the estimated closing value or sales price which shall further cover the cost of sale, unpaid balance and outstanding dues and fees arising from the purchase of property.
3. Make a statement of facts and enumerate your financial standing that would justify your need to do short sale. Present some proof of income and assets as well as copies of bank statements if you have.
4. Prepare a comparative market analysis especially when the value of property declined due to untoward events.
5. And lastly, prepare a sale and purchase agreement to cover the transaction of short sale.
Once everything has been done accordingly, as seller, it is your obligation to secure that your name will remain free from any bad credit records arising from the lender’s reaction to the short sale.