What Are The Steps In A Short Sale?

When starting there are a few basic items you must get in order to make sure you qualify for a Short Sale. Now we want to warn you of something first! In theory, a Short Sale is not necessarily complicated. Putting together the necessary paperwork and sending it off to the bank is easy. It gets extremely complicated once the negotiations begin. To start, you need a purchase offer to get the process started. In most instances you will not have a buyer ready to put in an offer. Plus, banks DO NOT allow homeowners to negotiate their own Short Sale! A Arizona Short Sale Realtor, or an Arizona Real Estate Investor / Negotiation Company must do it for you. The reason is it must be an arms length transaction meaning that you cannot discount your own mortgage and sell it to your parents who will end up letting you stay in the home. Also why we are on the subject, you cannot discount your mortgage and then buy the same house back at the discounted price! This is considered mortgage fraud and the lenders tend to frown on that. With these disclosures out of the way, let’s look at the Steps In A Typical Short Sale:

First, you must be able to prove a financial hardship. Banks are going to request this proof in the form of paycheck stubs, tax returns, a financial statement, and a hardship letter. Without a good reason why you cannot afford the home any longer, the lender(s) will not likely allow you to Short Sale the home.

Second, you need to figure out the value of your property. Many times a Realtor or an Investment Company like SellQuickForCash.com can provide you with a “market analysis” to give you an idea what your home is worth. We are trying to calculate your equity (or lack thereof) to figure out if you owe as much or more than what your homes current value is. If it is worth less than what you owe, we can continue with a Short Sale.

Third, you must decide if you want to use a Arizona Short Sale Realtor or an Investment Company such as SellQuickForCash.com to run your Short Sale? The reason you must choose at this point is that we need a purchase contract (buyer) to sell your property to. Obviously we want you to choose us and here is why. When you hire just a Realtor, you are hiring just one person. For most Realtors, Short Sales are a new phenomenon and they have little experience negotiating with lender(s). When you hire the Short Sale Experts at www.SellQuickForCash.com, you are hiring a team of specialists that all play a key role in the Short Sale Process. Plus, we have years of negotiating experience, and have many contacts with most major lenders! Lastly, we are a member of the BBB with many referrals to validate our experience and expertise!

What Is In A Typical Short Sale Package?

Remember the reason a lender will approve a  arizona short sale is because it will benefit them, not you! The lenders need to know that if they don't approve the short sale, they will have to foreclose on the property and that the short sale is more cost effective than foreclosing.

Every real estate short sale begins the same way with the building of a short sale Packet. The lender(s) need certain documentation and a proof of hardship in order to complete a short sale request. Below is a list of items commonly found in a short sale package:

Once we get these items together, we package them up with an offer, and send the short sale packet off to your lender(s). Expect at least 1-2 weeks before it gets into the lender(s) system and assigned a Loss Mitigation Specialist. Once in the system, the lender(s) typically order a Brokers Price Opinion (BPO) to establish value.

What Is A Short Sale ----> Why Would A Lender Do A Short Sale ----> What Are the Steps In A Short Sale ----> What Is In A Typical Short Sale Package ----> Brokers Price Opinion (BPO) ----> Short Sale Hardship Letter ----> Credit Consequences Of A Short Sale ----> Tax Consequences Of A Short Sale ----> Why Use Sell Quick For Cash To Negotiate My Short Sale