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How To Stop Foreclosure, Short Sale, And My Free Short Sale
Service
How To Stop
Foreclosure
Why banks want to stop
foreclosures?
What is a short sale in real estate?
How do short sales stop foreclosure?
How to do short sales? Short Sale
Process
My Short Sale Service
How To Stop Foreclosure
The most important thing you have to do to
stop foreclosure is to communicate with your lender. Keep in
mind that both you and your lender want to stop foreclosure,
and there are several alternatives available to you to avoid
foreclosure. The lender can either restructure your loan or
approve a short sale of your property. Your lender wants to
help you stop foreclosure. I explain why next.
Why banks
want to stop foreclosures?
Banks want to avoid foreclosures because
they lose money every time a home forecloses. If your
property forecloses they will spend a lot of money on the
foreclosure process and the subsequent sale of the property,
and they will have to sell the property well below market
price.
The foreclosure process itself will cost a
bank somewhere around $45,000-$50,000. Once the property is
foreclosed they will lose another 5-7% on the sale process.
This is why lenders would rather stop foreclosure and even
approve a short sale. As long as the short sale saves lender
more money than a foreclosure they are going to be inclined
to approve it.
What is a short sale in real estate?
Short sale definition: A sale by a
financially insolvent homeowner who is facing foreclosure
for less than the value of the outstanding loan. In other
words, the homeowner sells his property for less than he/she
owes to the lender.
How do short sales stop foreclosure?
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The homeowner must demonstrate to lender
hardship/financial insolvency (loss of employment,
illness, divorce, death of a spouse, etc.).
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For short sale to take place lender’s
consent and approval is required.
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The lender accepts the sale as payment
in full for the loan.
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Seller avoids foreclosure, but receives
no funds from the sale.
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Lender does not report foreclosure to
the credit bureaus.
How to do short sales? Short Sale
Process
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The homeowner (seller) has to list
property for sale.
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The seller must prepare a short sale
hardship letter asking the lender for short sale
approval.
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The lender sends to seller the
foreclosure package, which the seller needs to complete
and submit to the lender. In the foreclosure package the
seller is submitting his/her financial information
including bank statements, pay stubs, tax returns, etc.
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Other documentation that the lender may
require to determine if seller qualifies for a short
sale includes:
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Listing agreement
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Comparable market analysis which
includes sales and listings.
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Written authorization from seller to
release account information.
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Purchase/Sale agreement.
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Appraisal of the property, for which the
lender usually pays.
My Short Sale Service
A short sale is an even more complicated
transaction than the usual real estate sale and purchase,
and a good real estate agent is the difference between a
successful short sale and foreclosure.
When you list your property with me I price
your property to make it attractive for potential buyers as
well as acceptable to your lender, help you write the
hardship letter, prepare the CMA (comparable market
analysis), and most importantly negotiate the sale with the
lender, which is the hardest and the most time consuming
part of the short sale process.
AND THE BEST PART IS that the lender pays my commission. Let me help
you stop foreclosure. Contact me
now.
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