Short sale is one of answers to stop home foreclosure. In a short sale, the home owner’s credit scores will not suffer as much as it will in a housing foreclosure, not mentioning that both the home owner and the lender are spared from the burden of lengthy, frustrating, and complicated procedures. In applying for a short sale, there are a number of short sale information that home owners need to reveal to their lenders.

Enumerated below are the necessary papers required to push through a successful short sale contract.

1. Financial Statements. Financial statements of the home owners’ assets and liabilites are very crucial short sale information. Mortgage lenders will need to know the home owners’ savings, stocks, bonds, funds, real estate, and other properties. They need to be convinced that the home owners cannot afford to pay back the housing loan fully.

2. Letter of Hardship and Plea to Short Sale. This is the formal document that states why the home owners reached the brink of loan default and why a short sale is the best solution to stop the foreclosure. While it is recommended to write the letter with drama and sadness, the clarity and conciseness of disclosing reasons and supporting information must always be there.

3. Comparative Analysis of Real Property Values. The agreement to short sale is usually granted when the price of the house costs less than the total amount that home owners owe to the lender. Lenders must be given short sale information on how the housing property, in relation to other houses in the locale, has gone down in value.

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