What is a Short pay?
A short sale is the process through which your mortgage company agrees to settle for less than what is owed to them. They do this as an alternative to the expensive and time consuming process of foreclosure. Each lender has their own set of processes through which they decide whether or not to accept a short sale, and while there are many similarities, each has its own requirements for approval.
A very thorough "work~out package" must be presented to the mortgage company for the review/approval. The "work-out package" is the lenders list of instructions and requirements for considering a short sale.
Some of the things they will likely require are:
1. Full disclosure of your current financial situation.
2. Hardship letter.
3. Last 2 pay~stubs for all working borrowers (including L&I and unemployment benefit.).
4. Last 2 years tax returns.
5. Last 2 bank statements.
6. Last 6 months of Profit and Loss statement (if self employed)
7. Authorization to disclose personal information (when you list with us we will need this to be able to talk to the lender.).
The lender will likely require additional information.
I would not recommend you to do this on your own. There are companies out there who will do all the work for you. We can list your property and hire a company to do all the work for you at no additional expense to you. Please make sure you check on the company before you commit to them. No one should be charging you upfront for any services.
Take the burden off your shoulders and start making positive changes.
You must know the consequences of a short sale. Please check with your accountant and find out what your tax liabilities will be if you do a short sale. Here are some helpful links you can read up on regarding the Mortgage Debt relief program. Please make sure you do not solely rely on these articles but do your investigation. If you feel overwhelmed and would like to talk to someone about your short sale please contact us at 818-398-2539.
Why are Short Sales a good investment?
Many times you can find them 20% to 30% below market. Much better condition than REO's. Sellers have to complete a Transfer Disclosure Statement (Banks are exempt from this), you will find lout any serious defect that home may have (on REO's it's a gamble),
This is a perfect time to buy cheap and hold it until the market comes back. You missed it last time. It could be your second chance to make money in Real state.
Do not miss out on it.