How to Short Sale and Prevent Foreclosure Lincoln NE

Many homeowners in Lincoln want to know how to short sale and prevent foreclosure. This option is usually the last opportunity to sell their property. Short selling requires lender approval to sell the property for less than is owed on the mortgage note.

Re/Max Real Estate Concepts
(402) 441-4120
1001 S 70th StSte 225
Lincoln, NE
 
Re/Max Real Estate Concepts
(402) 441-4120
7160 S 29th StSte 6
Lincoln, NE
 
Brehm Enterprises
(402) 323-6700
201 N 13th St
Lincoln, NE

Data Provided by:
Cokes, Cheryl - Woods Brothers Realty
(402) 434-3800
7141 A St
Lincoln, NE

Data Provided by:
Case Case & Case
(402) 435-4797
1421 P St Ste 10
Lincoln, NE

Data Provided by:
Re/Max Alliance
(402) 441-4123
5730 R StSte D 2
Lincoln, NE
 
Benefit Asset management, Inc
(402) 217-2895
POB 30815
Lincoln, NE
 
Discover Real Estate
(402) 489-1000
201 S 84TH St Ste F
Lincoln, NE

Data Provided by:
New Paradigm Mediations
(877) 522-5005
P.O. Box 4661
Lincoln, NE
Office Hours
8:00 AM - 5:00 PM Mon-Fri

Daivd Noecker Property Manager
(402) 436-3413
2840 Fletcher Ave
Lincoln, NE

Data Provided by:
Data Provided by:

How to Short Sale and Prevent Foreclosure

Provided By:

How to Short Sale and Prevent Foreclosure

Author: Simon Volkov

Many homeowners want to know how to short sale and prevent foreclosure. This option is usually the last opportunity to sell their property. Short selling requires lender approval to sell the property for less than is owed on the mortgage note.

Outlining every detail of how to short sale would require a book. This article outlines the basics and will help readers understand how short sales work and what is involved. Since every lender handles this type of transaction according to their established protocol, there is no one-size-fits-all strategy. However, most lenders require similar information and utilize similar strategies.

Short sales are involved and every detail of the borrower's finances will be scrutinized. Lenders require borrowers to submit a short sale packet which includes financial records, tax returns, income and expenses, credit card and bank statements, list of assets and various other documents.

Banks can initiate foreclosure proceedings once borrowers become 15 days delinquent on their loan. Most banks extend a longer grace period, but as credit becomes tighter, banks become less tolerant.

Delinquent accounts are handled by the bank's loss mitigation department. Borrowers who have fallen behind in payments will be assigned to a loss mitigator who will work with them throughout the process.

The primary role of loss mitigators is to work with borrowers and banks to develop a repayment plan and cure mortgage arrearages. This is usually obtained by modifying the loan. Loan modifications are a good option for borrowers who are financially capable of making future payments.

If borrowers cannot qualify for a loan modification, the next available option is to short sale. Most lenders require borrowers to have a sales contract before granting short sale approval. Some will allow borrowers to list their property through a real estate agent. A buyer must be located within a few months or the bank commences with foreclosure.

One little known technique for locating buyers is to seek out real estate investors. Many investors are attracted to short sale properties because they are sold below market value and make good investment properties.

It is common practice amongst investors to purchase homes with cash in order to expedite the deal. This is the perfect scenario for obtaining short sale approval. Lenders do not have to wait for buyers to obtain financing. Sellers don't have to worry about the deal falling through and investors purchase the property at discount.

One important element of short sales is to determine which type is offered by the lender. Some lenders accept the sale price as payment in full. The borrower is released from the loan and can walk away from their property without owing additional money. This is referred to as Payment in Full without Pursuit of Deficiency Judgment.

Other lenders hold borrowers responsible for repayment of deficiency between the sale price and loan balance. When borrowers are unable to pay the deficiency in full, banks issue a judgment which remains on credit reports until fully satisfied.

It is crucial to openly discuss all options with your assigned loss mitigator. If necessary, consult with a real estate lawyer or short sale specialist. Short sales can be a saving grace or devilish curse which drives you further into debt. Take time to become educated about the process so you don't end up in worse shape than you already are.

About the Author:

Simon Volkov specializes in teaching people how to short sale real estate to prevent foreclosure. His book, ' Short Sale Hardship Letter eBook Course ', details the process, offers negotiation techniques, and provides step-by-step direction for writing a hardship letter. Currently, Simon is accepting a limited number of individuals to participate in his unique short sale program. To obtain additional details and submit property information visit www.SimonVolkov.com .

Article Source: http://www.articlesbase.com/real-estate-articles/how-to-short-sale-and-prevent-foreclosure-999052.html