A short sale is when a property is sold for less than what is owed on the mortgage principal balance, and is structured as a way for both the homeowner and lender to reduce their respective losses.
More often than not, short sales are reserved for situations of extreme financial hardship; prior to a bank beginning foreclosure proceedings.
Homeowners are usually required to prove the merits a short sale to their lender, which involves documenting that selling the home for less than its worth is the best and most viable option for all parties involved.
The short sale process starts with a letter of hardship. Skilled real estate professionals can assist you in understanding what needs to go in the letter.
To prove o the bank that a short sale is your best option, you’ll be asked to submit a cover letter which explains your hardship and to provide full financial disclosure. You’ll also need your original purchase contract, a balance sheet of your income and expenses, your asset statements and proof of income, and two years of federal tax returns in addition to other documents specifically required by your lender. Each lender has their own set of requirements but there are standard requirements common to all.
Lenders prefer handwritten letters and are more apt to agree to a short sale for homeowners who may have lost jobs or encountered significant medical bills. However, if this doesn’t describe your situation you may still qualify. Our team attorney will consult with you to help you determine if you are a likely candidate and to discuss all your options.
Draft a compelling letter and avoid extraneous details. Be short, be thorough, and be complete.
In addition, note that the following traits can help speed your short sale approval :
Choosing to short sale your home in Jacksonville or anywhere else, though, is not something a homeowner should pursue alone. Fortunately for Jacksonville homeowners, there are a number of qualified teams such as the Fennell Team who are can provide guidance throughout the process.