When the housing boom went bust few years ago, house owners across the US were badly hurt. With economy on slide, most individuals who had availed mortgage loan found the situation too hot to handle. Foreclosures became norm of the day and several properties were acquired by lenders. Short sales process comes to the rescue of troubled individuals and families and is worth exploring.
By going for it, borrowers can sell a mortgaged property and pay a major portion of their dues to lenders. Though this option may not help them in completely relieving them from debt, it can do away with most of it. Final decision in this regard has to be taken by the lender, who may or may not agree with it.
Lenders must provide sufficient evidence to back their claim of inability to pay their dues. They ought to convince them that they are facing acute shortage of funds or ill health. If it is evident that the property will not fetch expected amount of money, the same should be informed to the lenders.
Having a detailed discussion with an experienced lawyer, real estate broker, company or an agent in this regard is advised. A professional can guide an individual about the best option for him or her keeping in consideration all factors involved. Income tax needs to be paid on this sale as it is considered income as per law.
Your creditors will be contacted by it, of course with your prior authorization. Such authorization is provided to it with a suitable authorization letter. This letter provides necessary details and should be backed by sufficient documentary evidence to your claims.
You ought to provide details like your contact details, case number and name and address of the authorized professional. Documentary evidence which should accompany the letter includes proof of income, Comparative Market Analysis, financial transactions etc. In order to back your claim, you must provide details of your financial situation.
These documents can be accompanied by a cover letter from the borrower, explaining the current situation. This approach will help in building credibility of his or her case. Besides that, it will increase chances of his or her appeal getting accepted by the lender.
It is also possible that the borrower may have already contacted a buyer for his or her property. Details regarding the sales agreement should be provided to the moneylender without fail. The sales agreement should list all terms and conditions of the transaction in detail.
Lender may ask for change in certain terms of sales agreement if it is not completely satisfied. In such a scenario, borrower will need to change the same and send it to lender for review. Once the lender becomes completely satisfied, a lender may go forward with the short sale.
Short sales process can prove to be immensely beneficial if you keep all bases covered. You must gather maximum possible information and take every step carefully in order to taste success. You can even discuss your situation with friends or acquaintances that have already undergone the same process.
Jasper Brinks is a condo specialist and you can learn more about his expertise by visiting his Real Estate Nibley Utah website where you can search for Real Estate Hyrum Utah.
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