What Is A Short Sale

Dated: 12/09/2014

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So what is a Short Sale?
Basically a Short Sale happens when an Owner has a life changing event and can not keep up with their mortgage payment. When that happens the Owner contacts their lender to let them know why they are falling behind. If their lender is not able to modify their mortgage the next option is contact a Realtor who will guide them through the Short Sale process, and sell the home for less than what is owed on the mortgage.

In Maryland the Realtor is limited to listing, and marketing the home and find a Buyer to purchase the home. Once the Buyer is found the Owner engages an Attorney who will negotiate with the current lender. Before the current lender signs off and allows the sale to go forward they must check the Owner/Sellers tax returns, bank statements, current pay stubs. Why? Simply to make sure the Owner/Seller is not creating fraud. Once they are assured of this, they will sign off and allow the sale to move forward. The process often takes several months to gain the approval of the current lender. 
What is a "Life Changing Event?"
  • Death of a Spouse
  • Divorce
  • Loss of job
  • Relocation to replace the lost job
  • Becoming disabled and not able to work
What documents are needed?
  • Two years of tax returns
  • Current Pay stubs/unemployment records
  • Bank statements
  • Financial information sheet
  • Hardship letter 
As you read this and you're either going through a tough time, or know someone who is call me to discuss the situation. This is an unfortunate situation and must be handled properly and empathetically. Many hours of training have gone into learning the process, and developing the skills needed to do this successfully. Many of my clients have been successful and gotten out of their situation with dignity. Call me to set up a confidential consultation and we can set a path forward. 

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