"SHORT SALE" WHAT YOU NEED TO KNOW
What is a "Short Sale"? An agreement with your lenders to sell the property for less than you owe. This agreement must be made between yourself and your lenders. Your lenders will advise you as to their policy and procedures for "Short Sale". The agreement must be in writing from all of your lenders. When calling your lender regarding a "Short Sale" make sure that you are speaking to the "Loss Mitigation Department" as well as someone who has authority to help you with the process of a "Short Sale". Also it is a great idea to keep a phone log of whom you spoke to and when (calls you've made to the lender, attorneys and tax advisors and vice-versa).
Contact your mortgage companies if you believe that you are unable to meet your monthly mortgage obligations as soon as you are aware of your changing financial situation. In most cases your lenders may be able to work out a budgetary plan for you, as is in the case of a "Loan Modification." As with any legal contracts it is advised that you speak to a real estate attorney and tax advisor as well as perhaps a credit counselor.
Make up a budget, retain any and all expenditure reciepts. All of your Lenders will require that you provide them with an accurate Finacial Statement. Make sure to put all of your assets and debts on the statement.
Check with your local Realtor® to have them explain current market trends and conditions, as well as to provide you with an estimated currrent market analysis. Your Realtor should also provide you with the most current Short Sale information available. As with all legal procedures/questions, you are advised to check with an Attorney on all matters.
For additional information on this topic please feel free to contact me at firstname.lastname@example.org or 248.534.2264.