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Short Sale Help
Part II

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The Benefits Of Short Selling Over Foreclosure Are Obvious

A foreclosure puts a long-lasting black mark on your credit history and the process can be long and costly. A foreclosure is the most derogatory hit you can have to your credit score. A foreclosure sticks on your credit record for at least 10 years. In a short sale what the bank reports can vary and does not carry as much of a hit as a foreclosure

Short selling can be much faster and less expensive, and it doesn't look as bad on your credit report as a foreclosure.

Image thanks to zenithpropertysolutions.com

The Most Important Thing Is To
Realize That You Have Options
And Not Give Up Hope!

The Short Sale Is A Multi-Step Process Consisting Of The Following:

Contacting A Lawyer To Discuss Your Options. Short sales, loan modification and foreclosures are confusing for most homeowners. Even after receiving an explanation of the potential outcomes homeowners still feel overwhelmed. Also to insure your rights. For example, to walk away free and clear, borrowers must make sure all loans are extinguished and debts forgiven.

Pre-Qualification Of Your Home And You.

Hiring a Real Estate Agent, Setting the List Price and a Schedule of Price Reductions. With a short sale, you'll probably need to find a real estate agent willing to work for a smaller commission (which makes the bank a little more willing to absorb the loss)

Analyzing and Packaging Your Financials.

Documenting Any Predatory Lending Violations By Your Lender.

Negotiating Offers With Your Lender.

Contacting Your Accountant About Any Tax Liability.

Negotiating Post-Sale Liability And Credit Reporting With The Lender.

If you wish to obtain permission from your lender for a short sale, you must follow the lender's procedures. Most lenders will want a significant amount of financial information showing that you are unable to pay the mortgage as well as a professional report indicating what the home is worth in the current market. If you are imminently facing foreclosure or even if an auction date has already been set, the process can be expedited, but this depends.

While a better alternative to bankruptcy or foreclosure, a short sale may or may not be possible. Convincing a lender to short sell a property, however, can be very difficult. You must first submit a number of documents to your mortgage lender, who must then approve your request.

You'll need to convince your bank that you deserve approval for a short sale. Tell your mortgage lender about your financial hardships, including layoffs, divorce or medical issues. It is absolutely critical you document that you do not have the income or necessary assets to continue making payments on their home.

Image thanks to help-stop-foreclosure-now.com

While it may seem obvious, now is not the time to rack up the purchase of luxury items, like fancy cars or jewelry. Your lender will see these debts on your credit report and think you're a loose spender who doesn't deserve a break. It may also be necessary to provide the lender, either directly or through your attorney with documentation of your financial hardship, such as paystubs, bank statements and so forth. While this may seem like an invasion of your privacy, try to think of it as the fastest way out of an otherwise overwhelming debt.

If you find a buyer, don't expect closing to take place quickly. It may take 60 days, 90 days or even longer, depending on the lender, to get approval from the negotiator for the short sale to go forward.

Lenders are not properly staffed to handle the number of short sale requests. In order to make sure that your file doesn't linger on someone's desk, you need to be persistent-your agent or attorney should make frequent calls to the negotiator in order to insure that your short sale moves forward.

For the rest of this article please go to

Short Sale Help, Part I

Short Sale Help, Part III