Despite the name, short sales can sometimes take months before a deal is reached. The reason being is that the mortgage lender must approve an offer before it can be accepted, and a house can be sold. If you are a homeowner in Orlando who would like to put your home on the market and enter into a short sale, you should consider speaking with a real estate attorney who can explain all the legalities that are involved in the process.
Understanding a Short Sale
A short sale is when a homeowner decides they want to sell their home for an amount that is less than what they owe on their mortgage [Source: Experian]. Essentially, what this means is that a homeowner who decides to follow through with a short sale is okay with walking away from the transaction without any money. In most cases, a person who chooses to sell their home using the short sale method is someone who can no longer make their mortgage payments.
Now, in order to sell your home using the short sale process, Experian says that you will be expected to prove to your lender that you cannot afford your home payments and that a short sale is the best option for both parties. To prove this, your lender may ask that you provide the following:
- Pay stubs
- W-2 forms
- Tax returns
- Bank statements
- A hardship letter or affidavit that explains why you are unable to make your full monthly mortgage payments.
Now, if you decide to use the short sale method to sell your home, you would need to put your home on the market and wait for offers. Each offer that is received would need to go through the lender for approval, which is what makes a short sale different from a traditional sale. If an offer is accepted by your lender, that means you won’t be getting any of the profits as the amount will be less than what you owe. While a short sale can make it difficult for a homeowner to purchase a new home seeing they aren’t receiving anything from the sale, they can avoid foreclosure which would be far more damaging to their credit.
If you aren’t sure whether a short sale is the best avenue for you to take to sell your home, contact Legal Counsel P.A. to speak with an Orlando, FL real estate attorney. It is always best that you collect as much information as possible before starting the short sale process or entering into an agreement you don’t quite understand.
Legal Counsel P.A. has an office in Orlando which is located at:
189 S. Orange Avenue, Ste. 1800
Orlando, FL 32801
Email: [email protected]