If you are having trouble selling your home, you may be considering a Short Sale. A short sale is when you list your home for less than what you owe the mortgage company.
If you are considering this option, here is a list of items that you will most likely be asked to provide to the mortgage company:
- 3 month of Home Expenses (you could make a chart from Quicken or Microsoft Money)
- 2 or 3 of your latest pay stubs – to show that you still have a job
- A Hardship letter explaining why you cannot make your payments – what has changed since you bought your home
- Copies of last 2 months of bank statements – this shows that you don’t have the money and it is used to compare to your 3 months of expenses that you also sent.
- W2s and/or 1099s for last year
- If you work for yourself, you will need a profit and loss statement
- Listing agreement that shows that your home has already been on the market for at least 3 months
- Information on how much you owe to the 2nd trust (if any)
If you have a 2nd trust, send the exact same information to them. If you send something to 1 lender, send it to both.
Try to get permission from your lender before listing your home as a short sale. Occasionally, homes do not qualify for short sale for some reason. But in today’s market, most mortgage companies would rather have a short sale sooner then later if you can explain why it needs to be done.
If you have fallen behind, but feel that if you could just have a fresh start then you make your payments, then call your mortgage company. Actually call them more then they call you! Keep them informed every step of the way. Don’t bury your head in the sand. Keep them informed of exactly what is happening to you. They are more willing to work with you if they know what is happening.
And even if you called them in the past, call them again. Every few months they are coming up with new options to help families stay in there homes. There are more loan modifications out there now then ever before! The bank does not want you to foreclose. They don’t even want you to short sale your home. So call and see what is best for your family!
There have been numerous articles written on the Short Sale process. Here are some of my favorites…
http://www.ehow.com/how_8132_short-sale.html
http://www.realtor.org/rmomag.NSF/pages/Feat1200706?OpenDocument
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I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future.
Stacey Derbinshire
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