Getting Started with a Short Sale
The information on this page is offered with the assumption that you have already consulted with a financial advisor, tax attorney, accountant, and a credit counselor to answer the common questions that you may have regarding how selling your property short of what you owe will impact your credit score and how it will impact your income tax situation at the end of the year in which you sell the property.
If you have not answered these questions, please be advised that I am niether a financial planner, nor am I an attorney and that seeking professional counsel on these matters is important, and you should do it before continuing with this process.
I’M READY TO SELL
Great! Now we can get started. The following steps are going to help me facilitate the sale of your property as quickly as possible, for the highest price.
Typically there are costs associated with selling a home. Since you are probably in a position which puts you behind the eight ball financially, coming out of pocket to sell your home may not be an option. BE ADVISED THAT THERE IS NO GUARANTEE THAT THE BANK WILL AGREE TO LET YOU OUT OF THIS HOME WITHOUT COUGHING UP A FEW BUCKS.
I’ll do my best to get your home sold with as little expense to you as possible, but the lenders are mitigating their losses too, and the trends are changing daily. Where a bank may have previously been willing to pay certain costs associated with selling the home, there are some things the banks are no longer paying for that you may be held responsible for.
Preliminary documents you need to gather before we begin:
- Original home loan documents. Also, call the bank and get your payoff(s) on the home.
- Copies of your two most recent paystubs.
- Two most recent IRS Tax Returns.
- If you’re self employed, a 6 month Profit and Loss Statement.
- Two most recent statements of all asset accounts, such as checking, savings, investment accounts, etc.
- Write a letter of hardship explaining why you are unable to pay your bill. You can obtain an example here.
- For each lender who holds a lien on your home (your 1st and 2nd) you’ll need to write a Letter of Authorization giving your Realtor access to speak on your behalf when calling the lender. You will find an example here.
- Create an expense worksheet that shows every expense you have in a given month, including debt repayment, credit card minimums, etc.
When you have all of this information assembled you’re ready for the next step.
I’M READY FOR THE NEXT STEP
Excellent! Now it’s time to get that house listed. Contact me today about this next process!