Orlando Short Sales: Your Step-by-Step Process
If you need to avoid foreclosure and are considering an Orlando short sale, there are some steps you can take to help the process go smoother. First, understand what a short sale is and how it can benefit you. A short sale is a pre-foreclosure arrangement in which your lender agrees to allow you to sell your home for less than is owed on the mortgage. A short sale can benefit you by helping you avoid an Orlando foreclosure and possibly save your credit. A short sale means you can sell your home quickly and pay off the mortgage, thus, avoiding the unpleasant proceedings of a foreclosure.
As soon as you feel you cannot afford to keep up your payments on your home, contact your lender immediately. Find a possible short sale buyer through advertising, or you might want to use the services of an Orlando real estate agent or short sale specialist. Most lenders do not want to foreclose - many would rather work toward an alternative solution such as a short sale. Once you have a potential buyer, the lender will direct you to a department that handles short sales. The lender will likely require you to submit certain information so a short sale can be considered.
Here's a list of items you will likely need:
* Income statements or recent paycheck stubs
* Bank statements of your assets
* A hardship letter describing to the lender the reasons you cannot make payments (include any documentation such as medical statements, proof of unemployment or lost wages, etc.)
* Your property's fair market value via an appraisal or a Comparative Market Analysis (CMA)
* Projected proceeds of the sale of your property after the mortgage is paid off (will be a negative amount in a short sale including fees and closing costs)
* A listing agreement and purchase agreement (when available)
The lender will review all of your materials and may or may not approve a short sale of your home. If the short sale is not accepted, the lender will proceed with a foreclosure. If the short sale is approved, you can proceed with closing on the short sale of your property, and the lender will prepare to take a loss.
What About a Shortage?
A shortage is created after all is said and done because of fees, closing costs, etc. that might not be covered in the sale of your home. Your lender has an option to attempt to collect the shortage amount from you, and may even file a judgment or collection against your credit for the shortage amount. The IRS also might require income taxes on the shortage amount (if the shortage was forgiven by the lender). These issues can often be resolved by working with your lender and/or consulting a tax professional if necessary.
These steps may vary from one lender to the next, but being prepared with these items will save you a lot of time when pursuing a short sale on your home. Use Internet resources to get help with your Orlando short sale. Contact an Orlando real estate agent that specializes in Orlando foreclosures and short sales, Orlando MLS, and Orlando REO properties. An expert can lead you through the process and help you find the best possible solution.
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About the Author
+Chris Robertson is a published author of Majon International. All Rights Reserved. Copyright 2013 (Fri Sep 26 2008) Majon International. Majon International is one of the worlds MOST popular internet marketing and internet advertising companies on the web. Visit their main business resource internet marketing web site at: http://www.majon.com