What You Should Know About Short Sale
When an owner can longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure. One of those options is called a short sale.
Short sale is usually the last step taken by the bank to recover losses from a defaulted mortgagor. When lenders agree to a short sale, it means the lender agrees to accept less than the total amount due. They are willing to forgive a certain amount of debt or deficiency. However, not all lenders will accept a short sale or discounted payoffs, especially if it would make more financial sense to foreclose.
State laws vary, so consult your real estate lawyer to determine if your loan and case qualifies for a deficiency judgment or claim for a short sale.
The amount of time for a short sale to get approved is difficult to guess. In other words, the short sale process is long and tedious. The lenders in short sales business usually say that it takes 21 days time for the approval to come through.
It's hard to guess how long securing a short sale will take, but it's sure to be long, tedious, and tiring. Lenders usually say about 21 days or so for a case to be completely approved.
Not just for nonpayers, those who have never once paid a single installment can also avail -thanks in part to their negative equity. To short sell is to get out of a very rough and highly threatening financial situation, take it when you need it and take it if you can.
The process: The contract, authorization to release, and the addendum -these are the key parts of the whole short sale process, topped off with the warranty deed. Here we'll take a closer look at the contract and the addendum:
The process is quite simple to understand, it starts with the contract, then the authorization to release, and lastly the addendum. The warranty deed is also part of this whole process. What are really important to grasp in the process is the first two documents:
The Addendum
Addendum: Perhaps the most important document in the process, the addendum contains the basic and vital information regarding the property and the transaction:
Origination of the contract
Date
The names and other info pertinent to the parties involved
Address
It's better if both the simple address and the legal address are listed to avoid confusion.
Any investor, that is, the lenders, should know that in the foreclosure process, there is the opportunity to acquire bargain property -certainly a valid reason to agree to short sale. - 23217
Short sale is usually the last step taken by the bank to recover losses from a defaulted mortgagor. When lenders agree to a short sale, it means the lender agrees to accept less than the total amount due. They are willing to forgive a certain amount of debt or deficiency. However, not all lenders will accept a short sale or discounted payoffs, especially if it would make more financial sense to foreclose.
State laws vary, so consult your real estate lawyer to determine if your loan and case qualifies for a deficiency judgment or claim for a short sale.
The amount of time for a short sale to get approved is difficult to guess. In other words, the short sale process is long and tedious. The lenders in short sales business usually say that it takes 21 days time for the approval to come through.
It's hard to guess how long securing a short sale will take, but it's sure to be long, tedious, and tiring. Lenders usually say about 21 days or so for a case to be completely approved.
Not just for nonpayers, those who have never once paid a single installment can also avail -thanks in part to their negative equity. To short sell is to get out of a very rough and highly threatening financial situation, take it when you need it and take it if you can.
The process: The contract, authorization to release, and the addendum -these are the key parts of the whole short sale process, topped off with the warranty deed. Here we'll take a closer look at the contract and the addendum:
The process is quite simple to understand, it starts with the contract, then the authorization to release, and lastly the addendum. The warranty deed is also part of this whole process. What are really important to grasp in the process is the first two documents:
The Addendum
Addendum: Perhaps the most important document in the process, the addendum contains the basic and vital information regarding the property and the transaction:
Origination of the contract
Date
The names and other info pertinent to the parties involved
Address
It's better if both the simple address and the legal address are listed to avoid confusion.
Any investor, that is, the lenders, should know that in the foreclosure process, there is the opportunity to acquire bargain property -certainly a valid reason to agree to short sale. - 23217
About the Author:
Know about short sale an alternatives to bankruptcy or foreclosure only at Don Burnham's website http://www.weknowthewayback.com. Visit today to know all about short sale!
posted by X - Men @ 12:18 AM
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