Wilmington NC Short Sales – Important Information Homeowners Should Acknowledge PART TWO
Although the actual process that is commonly used in short sales may vary from one lending firm to the next, it is generally pretty much the same across the board. When most homeowners compare short sales vs. foreclosure it generally is agreed that short sales is the better option. The common short sales process is as follows:
1. The first step is to consult with the lending institution holding your mortgage so you can discuss the options available to you using short sales. This is when homeowners will gain short sale information from the lender in regards to the specific process they will need to follow to complete the sale of their property.
2. This step involves homeowners sending a letter to the escrow agency and the property buyer that will list their detailed short sale information and authorizing the release of this information.
3. The settlement statement holding the short sale information will be reviewed by the lender. The statement includes information on the short sale that includes the price the property will be sold, an itemized list of expenses involved, balances on loans that remain and any other fees that may be applied to the closing of the entire process of short sales.
4. Short selling a property requires that homeowners write a ‘letter of hardship’. This should include in-depth details in regards to financial difficulties the homeowner is facing. Other items the lender will also need to see to validate the necessity for short sales would include information of investment accounts, checking and savings accounts, pay stubs from the employer and any other financial records that would indicate validity for a short sale.
5. The overall condition the property is in, as well as the prices of homes of comparison that will determine a fair market value will be obtained by the lender through information the broker supplies.
6. All aspects of the short sales agreement will then be scrutinized by the mortgage lender. This is to determine that the amounts and conditions are reasonable and to ensure the commission on the real estate is acceptable.
WILMINGTON NC SHORT SALE EXPERT