A short sale is one possible alternative to a foreclosure. If you’ve found yourself unable to pay your mortgage, it’s possible to reach out to the lender to discuss a possibility for a short sale. If your home is underwater, which means it’s worth less than you owe, the short sale can help you sell the home for less while not having to make up the difference in the sale price and what you owe.
Short sales are preferred to foreclosures because they help the lender get a fair market price for the home. If a home goes to a foreclosure auction, it’s less likely that the home will be sold for a fair price. Many foreclosures sit on the market for a long period of time, and since they’re empty, the home deteriorates. That doesn’t happen with a short sale.
What can you do to make sure the lender approves your request for a short sale?
There are a few things you can do including sending in information about your current pay or salary. Typically, the lender wants to see that you are unable to make your payments and are looking to resolve your debt. A list of liens and proof of your income aids in proving your side of the argument. Additionally, you should include a comparative market analysis, since this shows the amount your home is worth in the area compared to what you owe. If a significant difference is shown, then the lender is more likely to understand and approve your short sale application.
Short sales are a better option over a foreclosure, although they can take many months to close. Once you have a potential buyer, the lender will decide if the offer is fair and whether or not the sale can continue and resolve your debt.