The idea of a short sale may not be that short after all. A short sale is termed as such, because the mortgage company or the lender is willing to sell the home "short" of the total loan amount owed on the home. This process is not accepted or allowed by every lender, but for the home owners who have chosen a short sale and been approved by the mortgage company, there are a few things that need to be taken care of before the home can be listed for sale .
A short sale leaves the lender with less money than originally owed. For this reason, the lender will want to gather financial information on the home owners before approving the final go ahead for the short sale. These financial documents will need to prove that the home owner is n dire straights and will clearly be unable to pay off the current mortgage. This means holding nothing back and having no pride. Every financial burden placed upon the family will need to be played up to the point of sheer sadness. The lender needs to know, without a doubt, that a short sale is the only option outside of foreclosure.
When the financials are received and approved by the lender, the next step will need a little help from a real estate agent or a real estate expert. The lender will want more financials. But, this time, the numbers will need to prove that the sale of the home will leave zero profit for the home owner. If at the end of the net profit sheet there is any money being owed to the homeowner, the short sale will not be approved.
After all of the financials are set and approved. The homeowner is not out of the woods yet. When the home sells, if there is a balance difference between the amount of money the lender is paid for the home and the amount owed on the mortgage. The lender has the right to demand that money from the home owner. No matter how large or how small the sum, the remaining balance on the mortgage is extremely the responsibility of the home owner.
A short sale may seem like a get out of jail free card. But there are careful planning steps, financial valuations and the possibility of still owed money at the end of the sale to worry about for the home owner. There are times when a short sale is not the best choice, but this will need to be discussed with your lender and your real estate agent.Immobilienmakler Heidelberg Makler Heidelberg
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Source by Julia Vakulenko