Wilmington NC Short Sale Top 5 things to do before you Short Sale Your House

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

Short-Sales Wilmington, NC

 

 

A short sale in real estate is not always a pleasant transaction.

 

There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy of foreclosure proceedings. One of those options is called a “short sale.”

 

When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.

 

Real estate investors can frequently make very profitable purchases of real estate through a short sale. Many short sales do not get approved or fall through for a variety of reasons. Learn here the step-by-step process to initiate a short sale, starting with the homeowner-borrower and moving through lender negotiations to the closing.

 

1. The Property Valuation Analysis for a Short Sale

Short sales will not work if there is sufficient equity in the home for the lender to sell it and at least break even in a foreclosure. The homeowner must be “upside-down” in their loan. Learn how to determine if this is the case.

Learn About How to Determine if the Homeowner is Upside-Down

 

2. Contacting the Lender for a Short Sale Application

Lenders will not talk to investors, potential buyers or real estate agents unless they are instructed to by the borrower. You will need to get their approval in writing, contact the lender with that approval, and make the first telephone contact. Learn about it here.

How to Get the Borrower’s Approval and Make the First Lender Contact

 

3. Writing the Hardship Letter for a Short Sale

The hardship letter is the cover for the short sale package. It is a lot like the cover letter for a job resume. It must be convincing and complete. The lender must get the first impression that it’s a short sale or a foreclosure or bankruptcy.

The Hard Ship Letter Step 3

 

4. Backing Up the Numbers With the Short Sale Package

The meat of your short sale presentation backs up the statements made in the hardship letter. You prepare a thorough and detailed set of documents and financial data to support the claim that a short sale is a good solution for the lender.

What to Submit to Convince the Lender and Get a Short Sale Approval

 

5. Elements of a Short Sale Purchase Agreement

Learn the things you need to consider in the preparation of a short sale purchase agreement. Where should you get one? Do you need an attorney? What elements need to be present in the purchase agreement?

What Does a Short Sale Purchase Agreement Look Like?

 

6. What the Lender Does With the Short Sale Package

If you prepared a thorough short sale package, the lender will be evaluating your numbers and getting some of their own. Learn about it here.

Short Sale Package

 

7. Negotiating the Short Sale with the Lender & Going to Closing               You may have to go back and forth with the loss mitigation department at the lender to get an acceptance of a short sale. Learn about this negotiation and the importance of a fast close.

 Negotiating the Sale

 

 

Posted By Nilesh Jethwa Wilmington and Leland Real Estate

Adopted from: About.com James Kimmons

 

Nilesh Jethwa is a local Realtor in Wilmington, and Leland area. If you are interested in contacting Nilesh please Click Here!

 

 I’m Nilesh Jethwa. I’m a Certified Distressed Property Expert (CDPE) in Wilmington NC and Leland NC Area. I make it my duty to provide honest and accurate information about the foreclosure process and short sales. A Certified Distressed Property Expert® is a real estate professional with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market, specifically short sales in Wilmington NC and Leland NC.The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. I believe that the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional in the Wilmington and Leland area. We have the tools needed to help you find the best solution for their situation. Often, when other options have been exhausted, CDPEs can help homeowners avoid foreclosure through the efficient execution of a short sale.  Click here to contact me!

 

 

 

 

 

 

 

 

Improve Your Credit Score

IMPROVE YOUR CREDIT SCORE, Wilmington NC Real Estate NC

 

Your credit score is one of the most important factors used to decide whether you will qualify for a major loan and what its terms will be.  Every day, many would-be-borrowers are denied loans, while consumers with strong credit histories are getting great rates on mortgages, car loans, and student’s loans. Understanding how your credit score is formulated is your first step when applying for a loan.

 

Take advantage of the rules.

Too many credit applications can lower your score. Multiple inquiries signal that you are having trouble successfully securing a loan and may be a credit risk or undesirable borrower. However, multiple inquiries from the same type of lender such as a mortgage company are counted as single inquiry if submitted over a short period of time.

 

Reduce your debt.

Creditors look for an optimal total debt load of around 36 percent of your house-hold income. If you monthly mortgage, car loan, and revolving credit card payments total more than 36 percent of your monthly salary, you will likely need to find a way to lower your overall dept before applying for a new loan.

 

Pay on time.

The easiest way to raise an ailing credit score is to make all your loan payments on time every month. Over the span of several months, you will likely need to find a way to lower your overall debt before applying for a new loan.

 

Timing is everything.

Wait 12 months following a credit problem before applying for a mortgage or a car loan. You will be penalized less for problems that are more than a year old.

 

Get your finances in order.

Avoid credit card purchases prior to applying for a major loan, and stay away from independent finance companies with high interest rates, which reflect poor credit management. Transferring dept from one card to another is another way to reduce your credit score. Of course, paying off credit cards every month is ideal. But that is not possible, steadily pay down the debt.

 

Posted by:  Nilesh Jethwa Wilmington and Leland, NC Real Estate

Nilesh Jethwa is a local real estate agent in the Wilmington and Leland area. If you are considering

purchasing a home in the near future. Please contact me for a free consultation.  Making

your home buying  process has seamless as possible. To contact Nilesh Jethwa please click here!