A short sale occurs when your property is sold for less than what you owe on your mortgage. It is an alternative to foreclosure and might be a sensible mode of action if you cannot afford to make your mortgage payments any more. A lender must agree to a short sale process and accept less than the amount you owe to pay off your loan instead of taking your house back for foreclosure. A lender may agree to a short sale if they think that it will save them money from going through a costly and lengthy foreclosure process.
The lender may grant a short sale if you are experiencing hardships such as unemployment, divorce, reduced income, medical emergency, death, bankruptcy, or a job transfer that requires you to go out of town. Lenders have their own guidelines that you need to follow when preparing for a short sale process, but in general, you need to submit the following requirements:
• Letter of authorization to allow your agent to speak to the lender
• Completed financial statement
• Preliminary net sheet or HUD-1
• Hardship letter
• Two years of tax returns
• Comparative market analysis or a list of recent comparable sales
• Bank statements in the last two months
• Recent payroll stubs
• Two years of W-2s
The short sale process can be a very complicated transaction that can have crucial implications on your finances, so you need to make sure that it is the best course of action to avoid foreclosure. Consulting with a qualified attorney with experience in short sale processes in Ocala can guide you into making a smart and informed decision in putting your home up for a short sale. An attorney from The Law Offices of Justin McMurray, P.A. can provide a free consultation and case evaluation about the matter.
Take note that the short sale will damage your credit. However not as much as a Foreclosure or bankruptcy and you can prevent a foreclosure judgment from appearing on your credit report which will make it easier to purchase a new home again in the future.
Our attorneys here at The Law Offices of Justin McMurray have experience in making short sale negotiations in Ocala. We have been successful in negotiating with numerous banks and lenders in Ocala, so you can be confident in our ability to handle your case. We can walk you through a short sale process so you can assess