Mortgage Short Sale, A Five Phase Process

Are you falling behind on your mortgage and want to avoid foreclosure through a mortgage short sale? The 5 steps below to execute a mortgage short sale.

The foundation of a mortgage short sale in Fountain hills, Az is as follows…a mortgage short sale is when you discover a buyer for your residence and the lender agrees to take the proposal even though it will not pay off the mortgage entirely. In the mortgage short sale method, the lender forgives the rest of the mortgage balance. Step 1:Start the mortgage short sale in one of two ways.

(1) Find a buyer in Avondale, Arizona for the mortgage short sale of your residence and then contact the bank to see if a mortgage short sale is suitable. Or, (2) contact the bank and ask for their approval in using a mortgage short sale to sell the home. It will work out better if you previously have a buyer prepared to purchase your residence, maybe an investor or a friend or family member. Nevertheless, if you do not have a buyer already, you should most likely talk to the lender about a mortgage short sale. Lenders do not have to agree to a mortgage short sale. So, you should check on the banks terms and conditions to see if you can use a mortgage short sale to get rid of your property. Check on this so that you do not waste time and energy attempting to find a buyer.

Step 2:If your lender is ok with a mortgage short sale, get all of the information that the bank will need to verify the mortgage short sale of your residence. Most banks will request a hardship letter stating why you need to mortgage short sale your home, a copy of the buyers offer, a proposed settlement declaration, and the lender might want to speak with the probable buyer. Usually, the bank collects this information to make sure that you are not going to profit from the sale. Since the lender will lose money, they desire to make sure that you are not making any money.

Step 3:Give your bank all of the documentation and information that they need to approve the mortgage short sale of the home.

Step 4:Protect your own welfare in this method. If the lender agrees to a mortgage short sale, make sure that you have a real estate handler or lawyer to help you understand the terms of the mortgage short sale. Most important is the idea that your bank will accept the offer as payment in full. It is within the lender’s rights to ask for you to pay the difference between the bid price and the payoff amount.

Step 5:If you bank approves of the mortgage short sale, have a real estate broker contact a title company to handle the transaction. When you have reached this point in a mortgage short sale, it is much the same as a regular home sale.

Do you want to go to the next step? Free Short Sale Consultation by Short Sale Specialists.

Fred Weaver and Kevin Kauffman, Group 46:10, do daily blog – find it here: Apache Junction – Arizona Short Sale Specialist