sellboji

What Should I Expect When I Sell?

A short sale often presents a good option for homeowners who are in danger of foreclosure or in default because of documented financial hardship.

The benefits of a short sale include:


1. A less severe hit to your credit history than what you'd experience with a foreclosure.

2. You continue to live in your house until the sale takes place.

3. In some cases, banks are offering homeowners cash incentives to do a short sale (to help with sales and moving expenses).

Because your credit history won't take as long to recover with a short sale as it would with a foreclosure – an average of two years versus seven years – the short sale option is great for sellers who want to own a home again in the near future.

Has your bank already contacted you?

Some banks have launched programs to prequalify homeowners for short sales. Through their records and housing data, they identify borrowers on their books who are in negative-equity situations. In this case, some are reaching out to borrowers in an attempt to further streamline the short sale process.

This makes it much easier for you, the seller, to proceed with a short sale.

Compiling your short sale package

Short sales require different paperwork than a normal home sale. In some instances, as mentioned above, your bank may have already qualified you for a short sale. In other cases, you and your agent will need to submit certain paperwork to your lender.

Your lender then decides whether or not to approve your request for a short sale.

Just what goes in a short sale package? Each lender is different, but in general, you will need:




 

 HUD-1 or preliminary net sheet

 Completed financial statement

 Letter of authorization to let your agent speak to the bank

 Letter that explains your financial hardship

 Two years of tax returns

 Two years of W-2s

 Last two months of bank statements

 Recent payroll stubs or other proof of income

 Comparative market analysis or list of recent comparable sales

Keep in mind that banks' processes vary, and the above list is a general representation of what many will want to see.

New federal guidelines shorten the wait

  

 

In the past, the notoriously long waiting game for short sales deterred many buyers from attempting them.

But times have changed. Many banks have streamlined the process and removed the barriers that have hamstrung short sales in the past. Some are even prequalifying borrowers to get the ball rolling faster.

In addition, federal guidelines have helped shorten the wait for mortgages owned by Fannie Mae and Freddie Mac. These are great changes for buyers and sellers, because it means there are regulations in place to help shorten the process.

Get In Touch

Local Expert Updates

Aaron Jones RE/MAX Hall of Fame (Real Estate Agent)

Aaron Jones

RE/MAX Hall of Fame

712.320.9442

712.336.4967

Greg Sheeler Real Estate Professional (Real Estate Agent)

Greg Sheeler

Real Estate Professional

712.330.1573

712.336.4967

Community Updates

Greg Sheeler Real Estate Professional (Real Estate Agent)

Greg Sheeler

Real Estate Professional

 712.330.1573

 greg@okobojipropertygroup.com

Boji Tattoo & Piercing

Arnolds Park

Boji Tattoo is a very welcoming tattoo place in the Lakes Area. Offering very competitive pricing for tattoos and piercings, Boji Tattoo is a great place for your next piece of ink. You can rest

More Info
Matt Lippon Broker Associate (Real Estate Agent)

Matt Lippon

Broker Associate

 712.330.0604

 matt@okobojipropertygroup.com

The Clubhouse

Milford

The Clubhouse 2501 Boji Bend Dr Milford, IA 51351 The Clubhouse is a smaller, comfortable restaurant with great food and a good atmosphere and even better food. There is a full bar, TV’s for the

More Info
Greg Sheeler Real Estate Professional (Real Estate Agent)

Greg Sheeler

Real Estate Professional

 712.330.1573

 greg@okobojipropertygroup.com

Humane Society of NW Iowa

Milford

The Humane Society of NW Iowa is an amazing non-profit organization in the lakes area. They are a no-kill shelter, run on donations from locals, and special events in the area throughout the year. The

More Info

Subscribe To Our Newsletter

The newsletter is sent periodically and will updated you on the latest real estate news and offers.

Your browser is out-of-date!

Update your browser to view this website correctly.

Update my browser now

×