Getting off the debt, stopping litigation, and re-positioning your financial future are the main reasons to consider a short sale.
The first part of the short sale is the strategic default. This maneuver is not for the faint of heart. It involves courage, planning, and a strong resolve to get the job done. Strategic default is when you stop making your mortgage payments and usually all other expenses associated with the distressed asset.
The reason why I call the asset distressed is because it is over burdened with debt. The key to this strategy is eliminating deficiency judgements. Sometimes realtors, attorneys, and closing agents will tell you the deficiency judgement is no big deal. It is a big deal and you should be very careful if someone tells you it isn't.
The documents a lender typically will require to do a short sale is as follows:
- 2 years tax returns
- 2 months bank statements
- W-2's and/or 2 pay stubs
- Completed financial informational documents, the forms are usually provided by the lender
- Hardship Letter
At first glance this list can seem quite intimidating. However, if you qualify they are usually no problem. Knowing what is coming and being prepared is the key to a successful short sale.
If you need assistance in deciding if a short sale is right for you, call Dan and Denise Dufault. We specialize in property located in Destin, Florida and the surrounding areas.