Inevitably there are people who will lose their homes in this economic disaster that we are facing. The question is how long will it take them to rebuild their lives afterwards? With a successful short sale instead of a foreclosure more option are available and less time is required in the rebuilding process.
One of the great things about short sales is that the owner gets to have much more control over the process. You get to pick a buyer, etc. It is much like a normal home buying process. The difference is in the paperwork. You have to work with your lender and get approved for a short sale.
It can take months to get approved, so you need to start right away. Banks are going through tons of applications, especially in this market, so really get on the ball, so you can get them everything that they need. You’ll need to prove that you are struggling financially, so if that is the case you’ll need documentation of income. The banks probably won’t care about any other debt that you have, just your income in relation to your payment will be the concern.
Often the banks will even foot the bill for mailing all the documentation and they use express services so it gets to them as quickly as possible. Each day costs them money as well.
You do not have to be behind on payments to apply for a short sale. In fact the sooner you let the bank know about your financial predicament the better. They may even be able to help you bring down your payments so that you can still afford your monthly mortgage payment.
Oft times you can get your loan deficiency forgiven if you do a short sale, but that is not always the case, but work with the bank to figure things out. With a foreclosure you are going to not have anything left to pay, but you’ll also have a very low credit score, foreclosure on your credit report, and won’t be able to apply for a home loan for 5-7 years. This will also severely impact your ability to get a car, etc.
With a short sale it is more likely going to be 2 years before you can get a new home loan, but in some situations you might be able to immediately, which can be a blessing in this great housing market when you are trying to downsize to something affordable. Rent can be a better deal or a harsher deal depending on your location, family size, etc.
To make your short sale go smoothly hook up with a short sale realtor Las Vegas has to offer. You’ll get some amazing help this way and the faster you sell your home the better for the bank and for you. You don’t want all of your hard earned savings going towards mortgage payments after you’ve lost your white collar job, now do you? Another tip is to make sure that your home is showing well, just as with any other home sale – keep it clean and uncluttered for when buyers come to look.