If you are not able to meet up with your mortgage obligation, rather than foreclosing your home, you can opt for a short sale. This means selling the home at an amount lower than what you owe. However, it is good to mention that not all homes or sellers qualify for Santa Cruz short sales. Even if a home qualifies for short sales, some lenders may not accept it, especially if they will make more gain should you foreclose the property. Here are some of the tips that you should consider if you are opting for a short sale.
Seek legal advice from a real estate lawyer
Santa Cruz short sales are not always the best. So, it is important that you seek the advice of a real estate lawyer. A lender may still ask you to pay for the difference between the amount owed and the amount the home is short sold. A real estate lawyer can tell whether any deficiency claim can be made on you or not after the short sale.
Get a letter of authorization
Normally, lenders will not reveal your personal information unless you authorize them. So, you need to submit a letter of authorization allowing the lender to speak with the people interested in purchasing your loan.
Get a preliminary net sheet
Ask your lawyer to prepare a preliminary net sheet for you. It indicates the expected sales price, unpaid loan, late fees, outstanding payment, real estate commission and any other costs incurred in the sale that add together to make up the estimated closing costs.
Prepare your hardship letter
As the name implies, this letter tells your financial situation and how you, as the homeowner, got there. It also appeals to the lender to accept the short sale. It is advisable that you be highly emotional in the letter to win the sympathy of the lender.
Other things that you should get include:
• Comparative market analysis
• Your bank statements
• Proof of assets and income
• Purchase and listing agreement
If you would like to know more about a short sale, please call me at 831.662.6522 or email me at Lauren@LaurenSpencer.com to schedule an appointment.
For additional real estate information, please visit my website at www.MySantaCruzRealEstate.com.