A Short Sale is when the lender (bank) agrees to discount their payoff (amount owed) to accommodate a sale of a house when:

  1) The borrower has experienced a hardship and is unable to repay the entire mortgage balance
  2) The value is less than the amount needed to pay off all loans, encumbrances and real estate selling fees
  3) The loan is delinquent or in default.

Some examples of a hardships are;

Unemployment / Reduced Income, Divorce, Medical Emergency, Job Transfer, Bankruptcy or a Death.

Each bank has its own guidelines but the basic procedures are similar from bank to bank.

The seller will need to prepare a financial package for submission to the short sale bank.

The seller's short sale package will usually consists of:

- Letter of Authorization, which allows the agent speak to the bank

- HUD-1 or Preliminary Net Sheet (from a Title Company)

- Completed Financial Statement  (form supplied by the bank)

- Seller's Hardship Letter

- 2 years of Tax Returns

- 2 years of W-2s

- Recent Payroll Stubs

- Last 2 months of Bank Statements

- Comparative Market Analysis (supplied by Realtor)

It is very important to have a Realtor who is experienced in negotiating Short Sales.

I know you have questions, please give me a call and we can discuss your options.

James & Elaine Hansen

Horizon Realty Group

ABR, CRS, GRI & Broker Realtor

ElaineSellsVegas@gmail.com

Call or Text 702-768-4556