If you are in danger of facing a foreclosure, you may want to consider a short sale instead. Many lenders will work with you to sell your property for less than the outstanding loan on that property in order to help you avoid a foreclosure or bankruptcy Las Vegas.
FAVORABLE CONDITIONS FOR SHORT SALE
Three conditions can really help you if you are seeking a short sale approval from your lender. First, if you are facing a tremendous financial crisis and can show in writing that it is unlikely that you will be able to make your ongoing mortgage payments. Second, if you can show that the value of your house has dropped below the market value of the homes in the same area due to local economic conditions. And, third, if you can secure a sale on your home quickly.
In this situation, a short sale can be a win-win situation for both you and your lender. You can be relieved of a heavy financial burden and begin to start over again, and your lender can recoup some money without the cost and time of a long foreclosure process.
Here are some steps you can take to increase the likelihood that you can successfully complete a short sale of your home:
* Put your home on the market. Work hard to secure a buyer as quickly as possible.
* Gather all documents. By submitting everything the lender will ask for in the beginning, you can reduce the back-and-forth time in an already long process. Include pay stubs, tax returns, pay stubs, a monthly budget, a letter explaining the need for a short sale, and pre-approval paperwork from your buyer.
* Wait patiently. Your lender may take some time to check documents, talk with investors, and get an appraisal.
* Review appraisal and valuation. You may want to order a broker price opinion so you can see how your bank valued your home. Be sure that the appraisal is comparing homes that are similar in size, age, amenities and location.
* Negotiate with your lender. You'll have to work together to settle on the sales price as well as obtain a waiver on the shortfall. This will ensure that you will not be responsible for the balance of the loan after the short sale is completed.
* Be prepared to chip in more if you can. If you have cash or other assets, your lender will probably ask you to cover more of the loan or be unwilling to waive the difference.
To see if a short sale would work in your situation, contact a bankruptcy attorney Las Vegas who has experience in applying for short sales as well as helping clients follow through with the entire process.