Top 5 things to do before you short sale your house in Wilmington NC
Short Sale in Wilmington NC is a long process and it takes times to complete the process and I know it is a difficult choice for you to sell your house which you bought with a good intension to live there or raise your family. But due to certain circumstances, now you cannot afford to keep the house and cannot qualify for loan modification or refinancing. At this point, one of the best options is to do short sale.
Before you decide on short sale, these are the 5 things you need to know which I think is important in your decision.
1. Educate Yourself with All Options
First thing, you have to do is check on internet and educate yourself about different options to avoid foreclosure as soon as you think you will be in trouble. I guess you are already doing that by reading my blog. You can also Google or search on Yahoo on loan modification, deed-in-lieu, bankruptcy, foreclosure, short sale and other available options to avoid foreclosure. Ask professionals (realtor, CPA, attorney) for various options who are familiar with options to avoid foreclosure. It’s better to be pro-active to solve any issues rather than waiting or ignore the problems.
2. Contact Your Lender or HUD Counselors
Once you know that it would be hard to keep paying the payment or when you missed your first payment, contact your lender directly for help in modifying your loan or refinance. Ask your lender what all documents needed for modification or refinance based on your qualified program. Submit all required documents and keep following up with the lender (I know, its time consuming but you are trying to save your house so, it’s ok for that hard work). You can also contact your local HUD counselors for help to negotiate with the lender so that you can keep your house. You don’t have to pay any fees, it’s a free service. Avoid all the scammers who ask for up-front fees or wants to sign your deed to them.
3. Consult Your CPA or Attorney
If your lender denied your loan modification or do not qualify for loan modification due to some reason and cannot afford to own your house, check with your CPA or tax attorney for any tax ramification or any other legal questiosn for doing short sale. The new Mortgage Forgiveness Relief Act 2007 allows you to relief from the tax if it’s your primary residence. Check your scenario with these professionals if you have to pay any taxes or not.
4. Documents required – if going forward for short sale
If you decide to go for short sale then you are required to present these documents to submit to the lender for short sale approval. It’s always to better to have these documents before you start the short sale process. These documents are as follows:
– Copy of your recent mortgage statements
– Last 2 years tax return
– Last 2 paystubs
– Last 2 months of bank statements
– Hardship letter which explains your hardship
– Financial statements which includes your incomes and expenses
– Any other documents to prove your hardship
5. Work with an experienced short sale agent
This is one of most important step in short sale, hire an experienced agent, if that agent is Certified and trained in short sale then that would be a plus. An experienced short sale agent knows how to negotiate with lender, how to prepare the short sale package and how to market your property to get buyer for your house. Before hiring, check that agent’s web presence, ask for reference and check whether they have successfully closed any short sale transactions.
If you are in Wilmington , NC or near by area and need my service for short sale, don’t hesitate to contact me at 910-622-0319, your expert short sale real estate agent in Wilmington area. www.shortsalewilmingtonnc.com.
posted by nilesh jethwa