Archive for the ‘Short Sale’ Category
how can you qualify for shor sale?
November 26th, 2010 | 
Author: Are you facing a financial hardship and about to experience a foreclosure on your home? In such a situation, you can use a short sale in order to prevent foreclosure on your house. A short sale is advantageous over a foreclosure as the former has less damaging effect on your credit score. Read on to find what a real estate short sale means and how you can qualify for it.
Real estate short sale – What it means
A short sale involves the sale of a home wherein the lender accepts an amount less than the outstanding mortgage balance. It is also referred to as pre-foreclosure sale. A short sale usually happens when there is not enough equity in the home, which can be sold in order to repay the mortgage. It may also happen that the property is in such a locality, where the home price is going down. So, the home is sold for less than the full payoff amount of the mortgage loan.
How to qualify for a short sale
There are certain factors that determine whether or not you may qualify for a real estate short sale. You need to say ‘yes’ to each of the following 4 factors in order to qualify for a short sale.
1. You’ve defaulted or about to default: Lenders may consider granting a short sale request if you’ve already defaulted on your monthly mortgage payments or you’re experiencing a financial hardship that may compel you to default on your home loan payments.
2. You’re experiencing a financial hardship: In order to go for a short sale, you’ll have to submit a letter of hardship explaining why you can’t pay back the difference that’s due upon sale and why you’ve stopped or you’ll stop making your monthly mortgage payments.
3. Your home value has gone down: The market value has dropped and your home is worth less than what you owe on your mortgage loan. The prepayment penalty can be included while calculating the unpaid mortgage balance.
4. You don’t have any valuable asset: The lender may not grant a short sale if he/she finds that you have valuable assets, as you can use them to repay your outstanding balance.
It is true that a real estate short sale can help you to prevent a foreclosure on your home. However, a short sale has a devastating effect on your credit report though it is less damaging than a foreclosure. If you go for a short sale, then your credit score may drop by 80 -100 points. Moreover, a short sale stays on a credit report for 7 years and it’ll be difficult for you to qualify for a mortgage in the next 2-3 years; even if you qualify, you may have to pay high interest rates on your mortgage.
Estate Planning Lawyer Resources:
In case you are in Scottsdale and want your property to qualify for Scottsdale Short Sale Visit www.danafirm.com. This law firm can assist you with proper real estate planning, with the intention that you do not give up your right to take precedence the choices that other people will make for you in these very significant areas.
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What is short sale? And when do you need a shot sale attorney?
In the last couple of months short sale has been increased dramatically. You may think how does short sale affects in real estate. And why do you need an attorney for that. Well shot sale is process that helps to avoid foreclosure. As we know that if a borrower is unable to pay their mortgage and they are bound to make back payment, then the lender takes the decision to sell the property at a moderate loss and it is always better than pressing the borrower. To avoid foreclosure short sale is the best process.
When a borrower is having any difficulties or he or she feels any financial discomfort to pay the requested fees and they are unable to afford it, they should immediately get in touch with the lender. Foreclosure is the last thing the lender would want to do. The lender will require the information in details about the property before considering short sale on property, and in order to make a deal, the documents needs to be submitted by the borrower. Now here you need an attorney to do the job on behalf of you.
It is very important to find then best short sale attorney or real estate who is much experienced in short sale transaction. If you are in a tough financial time, then a short sale attorney can take care of your real estate needs.
If you hire an experienced short sale attorney or a real estate attorney, they can work on your property with your real estate agent to sale your home quickly and also for the highest possible amount. Most of the attorneys will suggest waiting for some more offers, as it always seems that the offers made third and fourth in the short sale properties always try to meet or exceed the value of current price.
Useful Information:
When you are looking for any information on short sale or if you are Chicago and you are looking for a real estate attorney, contact with real estate attorney Chicago office to find the best.