Is there an application process to start a short sale?
The individual short sale process will depend on the lender. Be prepared to submit a hardship letter detailing the circumstances behind the short sale. They may request additional detailed information on the financial condition of the seller, ie; pay check stubs, bank statements, a personal financial statement. Additional, they may require a monthly budget assessment. Lastly, a signed, valid purchase and sales contract, preliminary HUD-1 settlement statement and a preliminary estimate of proceeds to the lender. • How will a short sale affect my credit rating? Each individual lender to decide what to report. Often it will note loan as “paid” on their credit report, while in the footnote it may reference “settled for less than amount owed”. Though it is a mark on the credit report, it is more favorable that “foreclosed”. • I have filed for bankruptcy, can I still do a short sale? Most lender would not consider a short sale if the homeowner is in the middle of a bankruptcy proceeding. A s
