The Short Sale ProcessA Short Sale is a process which allows the borrower to sell their home for less than what is owed on the mortgage loan and allows the seller to avoid having their credit score hit with a foreclosure penalty. Although, there is still a penalty given for short sales, the time to buy a home is shortened with a short sale versus a foreclosure home. A foreclosure can stay on your credit report for up to 10 years while a short sale can range 3 to 5 years. Banks grant short sales for two main reasons; the seller has a hardship and the seller owes more on the mortgage then the home is worth.
A few examples of a hardship are:
The Short Sale Process for Sellers:
Additional documents are to be included with the letter are:
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Short Sale Buyers
The Short Sale Process for Buyers:
Short sales can be quite lengthy and need a good real estate agent, a lender willing to work with you on the loan and a buyer
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