What is a Short Sale?
A short sale is when a lender (mortgagee) agrees to allow the borrower (mortgagor) to sell their home for less than what they owe on the mortgage rather than foreclose. A Short Sale is NOT a simple process. It is time consuming and takes a great deal of patience from all parties involved.
The mortgagor will be asked to provide the lender with data to support their claim as to why they can no longer afford their mortgage. Typically the lender asks for 2 years tax returns, 2 most recent paystubs, last 2 bank statements, a Hardship Letter (a letter to each lender explaining your situation), a list of your monthly expenses and a letter of authorization allowing a 3rd party to negotiate on your behalf, usually your real estate agent or real estate attorney. I strongly recommend that you enlist an experienced professional to negotiate the short sale. READ MORE