What Does Short Sale Mean? A short sale in real estate refers to a transaction where lender agrees to release the borrower from a mortgage in return for lump sum payment derived from a third-party buyer and/or borrower. Short selling a property typically involves a borrower and a professional requesting a lender to take a loss on the property by authorizing the borrower to sell the property at a reduced rate compared to what is owed. At the end of the transaction, the original borrower is no longer financially bound to the property. expensive, and it doesn't leave a black mark on your credit like a foreclosure.
Will the Bank Allow Me to Sell Our Home For Less Than We Owe? Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing as there are carrying costs that are associated with a foreclosure. The Bank as a lender will typically determine the amount of equity (or lack thereof), by determining the probable selling price from a Broker Price Opinion (BPO -Also known as a Broker Opinion of Value- BOV) or through an appraisal. For the home owner, advantages include avoidance of a foreclosure on their credit history and partial control of the monetary deficiency.You may also find yourself unable to keep up with your mortgage payments because of a recent layoff, divorce or illness.
The worst thing that you can do is NOTHING. there is no risk or cost associated with contacting our firm for information about your specific case and whether attempting a short sale would benefit you. If you would like a FREE CONSULTATION, contact us at the number above. If you are currently working with a realtor, we can assist them without infringing upon their fees and/or commission.
How Sentinel Law May Assist You in Getting YOUR Lender(s) to Approve the Short Sale? Much of our role is in negotiating and tracking the required documents, while working with all parties concerned to obtain an "Authorization of Short Sale." This is an official notice from the lender of the amount they are willing to accept that would release the present borrower from the mortgage. In many cases, those seeking a short sale are in foreclosure and may need our firm to represent you in Court. We also assist in preparing and presenting the following documents:
· Call the Lender
· Submit Letter of Authorization
· Preliminary Net Sheet
· Hardship Letter
· Proof of Income and Assets
· Copies of Bank Statements
· Comparative Market Analysis
· Purchase Agreement & Listing Agreement
CAUTION: Lenders typically require that a borrower have a verifiable hardship. If you choose to make extravagant purchases on luxury items, such actions may compromise your request for a short sale. The process and take a long time, as the lender must track down the actual note and investor who is managing the note in a trust or security.
