Selling a short sale home
What is needed in successfully selling a short sale home?
In a short sale the home owner owes more on the home than the current market value of the property. Also, home owner has generally experienced a hardship, which makes affordability of the home no longer possible.
Most banks have similar requirements which will be reviewed prior to approving a short sale:
1. An offer on the property
2. A hardship letter from home owner explaining hardship and reason why payments are no longer manageable.
3. Bank statements for the last 60 days
4. Copies of your tax returns for the last 2 years
5. Copies of your pay stubs going back 30-60 days
Once a bank has received all the above paperwork, bank will proceed to review and consider the short sale situation. Generally a bank will (at their expense) order an appraisal to help determine current market value of the home. Bank will want to make sure offer is in line with the current property value, prior to making any decision. If value of home, offer and all the supporting documentation warrants an approval on a short sale, the bank may give you an approval letter to proceed with the short sale. Once an approval of the short sale is given, buyer proceeds with any inspections and all parties begin preparing for closing and transfer of ownership of home.
Have any questions in regards to your situation, feel free to contact me on the form below.
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