Want to Sell Your Home But Owe More Than It is Worth?
Posted by Louis Belote on Monday, April 5th, 2010 at 11:42am.You are not alone! More and more homeowners are in this position! One option to consider is a "Short Sale". A Short Sale is a process where a lender is willing to accept less for a home at closing than the current outstanding loan balance on the property, but not every homeowner that wants to qualify will. There must be a "Hardship" for the homeowner involved. Some examples of "Hardships" are 1) Job Loss 2) Business Failure 3) Illness or Medical Costs 4) Divorce or Death of a Spouse 5) Natural Disasters. It is also very important that there is enough time to successfully market the property to qualify for a Short Sale, so I recommend that you contact an experienced and qualified Realtor as soon as possible if you feel you are in this situation. A Short Sale is much more advantageous than a Foreclosure for the homeowner mainly because of the impact on a person's credit rating. A Short Sale will cause a decrease of approximately 50 points on a credit score while a Foreclosure will stay on a credit report for 10 years and cause a decrease of approximately 200 points on a credit score. The first, and very important, step in a Short Sale in to have a fully executed and documented sales contract for the property. The next step is to prepare a very detailed Short Sale application for submission to the lender. The application should include a Hardship Letter as well as extensive, local real estate documentation that will represent the current "market value" of the property. This should include homes currently listed for sale as well as nearby homes recently sold. Absorption rates and any evidence of "Market Trends" should also be included. The complete application submitted to the lender could very well make the difference between a successful or an unsuccessful Short Sale, so be sure what is submitted is sufficient for the lender to approve the transaction. We have completed Short Sales and have access to the information your lender will expect when reviewing your application and can help you compile detailed documentation. CONTACT US for a confidential review of your situation and more information about how we can successfully get your home SOLD! Feel free to call us directly at (615) 804-9999.
Louis Belote
Licensed Broker, ABR, GRI, CRS, SFR, e-Pro
3825 Bedford Avenue, Suite 102
Nashville, TN 37215
DIRECT PHONE: 615.804.9999
Office Phone: 615.327.4800
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