Mortgage Short Sale, A Five Phase Method

Are you falling behind on your mortgage and want to steer clear of foreclosure through a mortgage short sale? The five steps below to perform a mortgage short sale.

The foundation of a mortgage short sale in Phoenix, Arizona is as follows…a mortgage short sale is when you find a buyer for your house and the lender agrees to take the bid even though it will not pay off the mortgage completely. In the mortgage short sale procedure, the bank forgives the remainder of the mortgage balance. Step 1:Begin the mortgage short sale in one of two ways.

(1) Find a buyer in Chandler, AZ for the mortgage short sale of your home and then contact the bank to see if a mortgage short sale is satisfactory. Or, (2) contact the lender and ask for their approval in using a mortgage short sale to sell the house. It will work out better if you previously have a buyer prepared to purchase your residence, perhaps an investor or a friend or family member. However, if you don’t have a buyer already, you should probably talk to the lender about a mortgage short sale. Lenders do not have to agree to a mortgage short sale. So, you should check on the banks terms and conditions to see if you can use a mortgage short sale to get rid of your house. Check on this so that you do not waste time and energy trying to find a buyer.

Step 2:If your bank is ok with a mortgage short sale, get all of the information that the bank will need to confirm the mortgage short sale of your residence. Most banks will request a hardship letter stating why you need to mortgage short sale your residence, a copy of the buyers proposal, a proposed settlement statement, and the lender might want to speak with the probable buyer. Generally, the bank collects this information to make sure that you are not going to profit from the sale. Since the bank will lose money, they desire to make sure that you are not making any money.

Step 3:Give your lender all of the documentation and information that they need to approve the mortgage short sale of the house.

Step 4:Protect your own welfare in this method. If the lender agrees to a mortgage short sale, make sure that you have a real estate professional or lawyer to help you understand the terms of the mortgage short sale. Most essential is the idea that your lender will accept the bid as payment in full. It is within the bank’s rights to ask for you to pay the difference between the proposal price and the payoff amount.

Step 5:If you bank approves of the mortgage short sale, have a real estate agent contact a title company to handle the transaction. When you have reached this position in a mortgage short sale, it is much the same as a regular residence sale.

Do you want to go to the next step? Free Short Sale Consultation by Short Sale Specialists.

Fred Weaver and Kevin Kauffman, Group 46:10, do daily blog – find it here: Gilbert – Short Sale Arizona