| Short sale real estate refers to property being | | | | violators go to prison. Don't risk losing your |
| sold for less than the amount owed on the | | | | freedom or being charged a hefty fine. |
| mortgage loan. This type of real estate | | | | The short sale hardship letter provides the |
| transaction is sometimes available to borrowers | | | | opportunity to explain your story. This is by far |
| who have defaulted on their loan and can no | | | | the most important financial letter you will ever |
| longer fulfill their mortgage obligation. In order to | | | | write. Take time to write it well. |
| avoid foreclosure lenders allows property owners | | | | The letter of hardship should include a |
| to sell real estate for less than is owed on their | | | | chronological timeline of events which caused you |
| mortgage loan. | | | | to fall behind and actions taken to overcome |
| Engaging in short sale real estate transactions is a | | | | financial challenges. If you cancelled your cable and |
| complex and lengthy process. In most instances, | | | | cut up your credit cards, state this fact in your |
| the services of a real estate attorney, realtor or | | | | letter of hardship. |
| short sale specialist will be required to complete | | | | Once you obtain short sale approval you are |
| the deal. | | | | required to sell your real estate within a set |
| Not all mortgage lenders participate in short sales. | | | | period of time. Most lenders require borrowers to |
| If you are delinquent with your mortgage | | | | hire a realtor. When realtors participate in short |
| payments the first thing you should do is contact | | | | sale transactions they agree to accept a lower |
| your lender and see if this option is available. Most | | | | commission rate. Therefore, it might take awhile |
| lenders restrict short sales to borrowers who do | | | | to locate a realtor willing to assist you. |
| not possess accrued equity in their property and | | | | A better option might be to locate a private |
| owe more than the real estate is worth. | | | | investor willing to purchase your real estate. Many |
| In rare instances, lenders will engage in short sales | | | | investors are adept at short sale transaction and |
| with borrowers who possess accrued equity and | | | | can assist you through the process. Should you |
| are current on their note. Borrowers facing life | | | | decide to go this route, seek out investors that |
| catastrophes such as death of a spouse, divorce, | | | | possess short sale experience. Doing so can save |
| or terminal illness can occasionally engage in real | | | | you time, money and frustration. |
| estate short sales. | | | | When talking with your lender, be certain to |
| Although each lender establishes their own short | | | | inquire about the type of short sale agreements |
| sale protocol, most require the submission of a | | | | they provide. Some lenders require borrowers to |
| short sale packet. The packet consists of legal | | | | pay the difference between the sale price and |
| forms, financial documents and a letter of | | | | loan balance. This is known as a Deficiency |
| hardship. | | | | Judgment and remains on the borrower's credit |
| This short sale packet is your ticket to freedom. | | | | history for seven years. |
| Fill out every form; double-check everything | | | | Other lenders accept the agreed upon sale price |
| twice; have your lawyer review it; and by all | | | | and do not persue borrowers for the difference. |
| means make certain to return it on time! | | | | This is referred to as Payment in Full without |
| More importantly, do not exaggerate or lie about | | | | Pursuit of Deficiency Judgment. Obviously, this is |
| anything. Falsify financial information in a real | | | | the preferred option. |
| estate transaction is a federal offense and | | | | |