Archive for the ‘Arizona Mortgage’ Category

Mortgage Short Sale, A 5 Stage Process

Tuesday, July 13th, 2010

Are you falling behind on your mortgage and desire to avoid foreclosure through a mortgage short sale? The five steps below to execute a mortgage short sale.

The foundation of a mortgage short sale in Gilbert, Arizona is as follows…a mortgage short sale is when you come across a buyer for your house and the bank agrees to take the offer even though it will not pay off the mortgage entirely. In the mortgage short sale method, the bank forgives the rest of the mortgage balance. Step 1:Begin the mortgage short sale in one of two ways.

(1) Find a buyer in Paradise valley, Arizona for the mortgage short sale of your home and then contact the bank to see if a mortgage short sale is suitable. Or, (2) contact the bank and ask for their approval in using a mortgage short sale to sell the house. It will work out better if you already have a buyer ready to purchase your residence, perhaps an investor or a friend or family member. However, if you don’t have a buyer already, you should most likely talk to the bank about a mortgage short sale. Lenders do not have to agree to a mortgage short sale. So, you should check on the lenders terms and circumstances to see if you can use a mortgage short sale to get rid of your property. Check on this so that you do not waste time and energy attempting to find a buyer.

Step 2:If your lender is ok with a mortgage short sale, get all of the information that the bank will need to confirm the mortgage short sale of your house. Most banks will request a hardship letter stating why you need to mortgage short sale your home, a copy of the buyers proposal, a proposed settlement statement, and the lender might desire to speak with the potential buyer. Normally, the bank collects this information to make sure that you are not going to profit from the sale. Since the lender will lose money, they desire to make sure that you are not making any money.

Step 3:Give your bank all of the documentation and information that they need to approve the mortgage short sale of the residence.

Step 4:Protect your own welfare in this method. If the bank agrees to a mortgage short sale, make sure that you have a real estate agent or lawyer to help you understand the terms of the mortgage short sale. Most significant is the idea that your lender will accept the bid as payment in full. It is within the lender’s rights to ask for you to pay the difference between the bid price and the payoff amount.

Step 5:If you lender approves of the mortgage short sale, have a real estate professional contact a title company to handle the transaction. When you have reached this spot in a mortgage short sale, it is much the same as a regular home sale.

Do you want to go to the next step?

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