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Mortgage Short Sale, A Five Phase Process
By Vic Hurlstorm | May 28, 2010
Are you falling behind on your mortgage and want to duck foreclosure through a mortgage short sale? The five steps below to execute a mortgage short sale.
The base of a mortgage short sale in Chandler, Arizona is as follows…a mortgage short sale is when you find a buyer for your residence and the lender agrees to take the offer even though it will not pay off the mortgage completely. In the mortgage short sale method, the bank forgives the remainder of the mortgage balance. Step 1:Begin the mortgage short sale in one of two ways.
(1) Find a buyer in Phoenix, Arizona for the mortgage short sale of your house and then contact the bank to see if a mortgage short sale is acceptable. Or, (2) contact the lender and ask for their support in using a mortgage short sale to sell the residence. It will work out better if you already have a buyer prepared to buy your home, maybe an investor or a friend or family member. Nevertheless, if you don’t have a buyer already, you should possibly talk to the bank about a mortgage short sale. Lenders do not have to agree to a mortgage short sale. So, you should check on the lenders terms and circumstances to see if you can use a mortgage short sale to get rid of your property. Check on this so that you don’t waste time and energy trying to find a buyer.
Step 2:If your lender is ok with a mortgage short sale, get all of the information that the lender will need to confirm the mortgage short sale of your home. Most banks will request a hardship letter stating why you need to mortgage short sale your residence, a copy of the buyers bid, a proposed settlement declaration, and the bank might desire to speak with the possible buyer. Generally, the lender collects this information to make sure that you are not going to profit from the sale. Since the lender will lose money, they want to make sure that you are not making any money.
Step 3:Give your lender all of the documentation and information that they need to approve the mortgage short sale of the home.
Step 4:Protect your own welfare in this method. If the bank agrees to a mortgage short sale, make sure that you have a real estate handler or lawyer to help you understand the terms of the mortgage short sale. Most significant is the idea that your bank will accept the bid as payment in full. It is within the lender’s rights to ask for you to pay the difference between the bid price and the payoff amount.
Step 5:If you lender approves of the mortgage short sale, have a real estate broker contact a title company to handle the transaction. When you have reached this spot in a mortgage short sale, it is much the same as a regular house sale.
Do you want to go to the next step? Free Short Sale Consultation by Short Sale Specialists.
Fred Weaver and Kevin Kauffman, Group 46:10, do daily blog – find it here: Foreclosure Help – Short Sale Arizona
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