There are many things you can do to improve the chances of short sale approval. In fact, by doing a little basic research about your home’s current value and learning all you can about the Foreclosure Process you’ll make a proposal that will be hard to refuse.
The biggest hurdle in getting short sale approval is convincing the lender that its the best outcome for both sides. By confirming that your mortgage is underwater and that you can’t afford the monthly payments, the lender will quickly realize that there are few options and a short sale is much cheaper and easier for them than a protracted Foreclosure Lawsuit. Further, as the inventory of bank owned properties continues to grow they are less interested in adding your home to that inventory and much more inclined to work with you.
To confirm to the bank that your mortgage is underwater, you’ll need to document how much your home is worth based on comparable sales in the area. You can get this information from a local realtor you trust, an appraisal company or one of the many online websites that provide price estimates like zillow.com and other sites. How Do You Know if You Have an Underwater Mortgage?
Once you can show the lender that your mortgage is underwater and by how much, the next step is submitting a package with all of your supporting materials. To help you contact the bank to both explain your financial condition and request your specific Foreclosure Option, we’ve prepared several different Sample Documents including cover letters and financial hardship letters for each foreclosure option.
As for supporting information, banks typically require a hardship letter that explains the nature and cause of your financial problems together with tax returns and recent pay stubs to make sure they’re not getting ripped off by people who don’t really have financial problems. By using our Sample Documents to guide you, the bank will recognize they’re dealing with an educated borrower and be much less inclined to take advantage of you.