A short sale is selling property for less than the outstanding loan obligations on the property. By short selling, the homeowner can avoid foreclosure. For a homeowner to be approved for a short sale, the owner needs to show the lender that he or she is facing financial hardship, and the housing market must have gone down so much that the home is no longer worth the remaining balance on the mortgage or mortgages. The short sale allows the homeowner to sell their property for the current market value. There will still be a negative entry on the credit report, but it will not be as bad as having a foreclosure on your record.
Before applying for a short sale, it is best to have all the required documents ready for the lender. The lender will need tax returns for the last two years, bank statements, pay stubs for the previous month, and documentation of the homeowner’s hardship. If the documents are too old by the time the lender reviews the documents, the lender will likely request updated bank statements and pay stubs. If the homeowner submits a completed package of required short sale paperwork, the short sale could take roughly six to eight weeks from start to finish. There is no prescribed schedule for a short sale, and the time it takes to complete varies depending on the lender and the situation.
A short sale is not an easy process, so a law firm with experience in short sales is necessary to help guide you through the process successfully. Debt Rescue Law has helped many people with foreclosure, short sale, bankruptcy, debt settlement, and loan modification. Contact us for a FREE consultation today at (833) 707-1234.