What really is a Bank Short Sale? How dose it work? Is it for Me ?
In a bank short sale, is when your mortgage lender agrees to accept less than your outstanding balance as payment in full for your mortgage. This allows you to sell your home at a discount, and turn the entire proceeds at closing to your bank.
Most lenders that I have worked with ( yes it's has been several ) will accept a short sale if it will cost the bank less than if they where to spend Attorney fees and Court Costs to foreclose on your property.
Your Lender takes a loss on sale and you do not get to keep your home. You avoid the foreclosure proceedings and the foreclosure history on your credit report
A short sale works best for people who owe more than their home can sell for in the current market. For example, you may owe $300,000 on your home, but due to market conditions, its value has dropped to $125,000. With a bank short sale, your bank agrees to take the loss so you can sell your home and get rid of the mortgage.
Many banks require the home owner to be at least 90 days behind on your mortgage before accepting a short sale. There are a few banks will agree to a bank short sale, even if the home owner is current on payments if they can provide written documentation that a financial hardship will make it hard for them to stay current now and in the near future.
Each bank has its own short sale requirements, but in most cases, you will need a hardship letter explaining your situation, why you can not meet your requirements with financial documents such as bank statements, tax forms, pay stubs, and a financial statement showing your assets and liabilities.
Please call me and I will explain more in-detail and help you understand, if this process makes sense for you and your situation.
I may not be a so called expert, but I am pretty darn good. I invite you to put me to the test and see for yourself !
I look forward to talking to you.
Joe Kendall, Broker Associate
Right Choice Realty
Phone 239-560-0726
Email joek4realestate@aol.com
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