Short Sale and Your Lender- By: Roby Hicks
Many find short sale as a solution to their foreclosure problems. With this, they are able to sell the property and settle their mortgage obligation. However, this is easier said than done. There are several things that you have to do to ensure that you get an approval from your lender. You might ask why your lender would disapprove such proposal. Remember, a short sale is a lenderís last resort. As much as possible, he would exhaust all available options before he agrees to this. This is because the value of the property is less than the value of the remaining amount due. This means that if the lender agrees to this, he agrees to the discounted payment as well.
To get the approval of the lender, the property owner must be ready, In addition to the hardship letter; he should also prepare the other requirements. The package has to be ready. Aside from that, he has to know the package very well so that he will be able to answer any questions. This will also avoid the waste of a good package.
First, you have to call the lender. You should be able to talk to someone from the loss mitigation department. Once you talk to an officer, introduce yourself. Ask a fax number and let them know why you are calling, which is to propose a short sale. You should be polite when talking to the officer and be attentive with what he has to say.
Hopefully, you will land an appointment. You have to look presentable and professional. Let him speak first. He will most likely discuss with you the losses involved if they push through with your short sale proposal. This is why you have to be ready. The necessary requirement will make it easier for you. Complete them first, familiarize them and present it to the mitigation officer.
As mentioned earlier, you need to know your package so that you can provide good answers to any questions raised by the lender. It would be best if you create a script and familiarize it. Before you meet with the mitigation officer, see to it that you have the hardship letter, the estimated HUD1, the Authorization to Release Information, the Financial Statement and the purchase and sale agreement.
In order to negotiate for the approval of the short sale package better, you should learn how the lenders think. If you look at the real estate market today, you will notice that the number of foreclosed properties has gone up. This means that the lenders are facing a lot of foreclosure issues. You can take advantage of this by showing the mitigation officer how they can benefit from the short sale. With it, they do not have to worry about selling the property. They do not have to incur foreclosure expenses as well.
Short sale offers a lot of benefit. However, you have to be patient in order to get an approval. Make sure that you prepare all the requirements. You have to be familiar with your package as well so that you can present it properly. Most importantly, learn how to negotiate well with the mitigation officer.
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