How To Do a Short Sale
For many troubled homeowners, knowing how to do a short sale is the first step to getting back on track. But few of them really understand how to do a short sale, let alone doing it well. As a result, many short sale attempts fail and end up becoming foreclosures. This is why if you’re out for solutions, it’s important to get informed. Besides how to do a short sale, you should also know how to get the best terms, how to negotiate with your short sale lender, and what to do if it doesn’t work out. Here’s a quick guide on how to do a short sale to help you get started.
Qualifying For The HAFA Program
If you’ve previously applied for a loan modification, you may qualify for a short sale with the Home Affordable Foreclosure Alternative (HAFA) program. Your bank should send you a short sale offer not long after denying a modification, along with details on how to do a short sale according to HAFA guidelines. You qualify if you are at least 60 days behind on your mortgage and do not have the means to pay it off.
Short Sale Requirements
Once you know how to do a short sale with your bank, you can start gathering the documents you’ll need. This varies from lender to lender, but the most common include bank statements, tax forms, proof of income, and a hardship letter explaining your situation. Make sure the documents are complete—this tells your bank that you’ve read up on how to do a short sale and will make them more willing to work with you.
Working With An Agent
Experts highly recommend hiring a short sale agent, even if you know how to do a short sale on your own. Besides listing your home for you, a good realtor can help you plan out everything from application to closing day, and even give you tips on how to do a short sale again in the future. They can also market your home more efficiently and negotiate with potential buyers to make sure you get the better end of the deal.