How is a Short Sale Negotiated with a Mortgage Bank?
Short sales are one of the most difficult and complicated residential transactions. Compared to a normal sale, these transactions require additional paperwork, intricate negotiations with the mortgage banker(s), and careful preparation of the process and purchase offer. A short sale package typically includes: a purchase offer contract, buyer’s loan qualifications, a realistic and detailed analysis of the fair market value of the home, current local real estate market conditions, seller financial information, seller hardship letter and more. Basically, the short sale real estate professional must demonstrate to the mortgage bank(s) that the home is upside down, the purchase offer is fair and just and that the homeowner has a financial hardship worthy of a short sale. This financial hardship can be due to job layoffs, illnesses, divorce or even the unexpected large increase in mortgage payments due to interest rate resets. What’s Causing the High Volume of Short Sales in the Phoenix Rea
