Will your lender allow a short sale?
The first step in the short sale process is to find out if your lender will approve or allow a short sale on your home. Mortgage lenders consider a number of factors when deciding if they will approve a short sale. Providing information that shows you have a financial hardship is a good start. If your hardship is caused by death, divorce, job loss or illness, your lender may be more open to allowing a short sale of your home. The lender will also consider which option is more profitable to them, allowing a short sale or proceeding with a foreclosure.
Make sure that all communications with your lender are documented and that any information they request is given in a timely manner. Open communications between your lender, your Realtor and yourself should be at the top of your priority list. The process will run more smoothly if everyone is organized and informed. Your first contact will most likely be with your lender’s Loss Mitigation Department. You should be assigned a Negotiator who will be your contact throughout the process. Having all of your documentation ready ahead of time will save you countless hours during this process. Your Realtor can provide you with a list of documents that you will need to have available.
If your home has depreciated considerably and you are considered “upside down” in your mortgage, the lender may be more willing to explore the short sale option with you. The lender may also have other factors to consider when making the decision to allow a short sale. If your loan is owned by investors, the lender may have to get investor approval before proceeding.
If you have more questions on whether your lender will accept a short sale on your home, please contact us at 480-560-6934 or visit Arizona Short Sales. We will be happy to provide information about your lenders requirements and any documentation you will need to begin the process of short selling.
