"A short sale is the process by which a homeowner can sell a house for less money than what is owed on the mortgage. There are alternatives to bankruptcy or foreclosure proceedings for homeowners/borrowers who can no longer afford to keep mortgage payments current. One of those options is called a "short sale." Sometimes, to avoid going through the costs of foreclosure, a lender will sanction a short sale by allowing a homeowner to sell (allowing a buyer to purchase) the home for less than the mortgage balance while the home is in pre-foreclosure stage. "
The seller took about one month to come to an agreement regarding the purchase price with us. Once we had a contract we submitted it to an attorney with valuable short sale negotiation experience to expedite the process.
The attorney gave the seller and seller's realtor a checklist of necessary documents to submit to the lender:
- Two years tax returns with W'2s
- Three months bank statements
- Current monthly budget
- All mortgages with account numbers
- Any pending bankruptcy
- Hardship letter
- Last 30 days pay stubs (if applicable)
We were in limbo for a long time, I didn't even want to think about it because I didn't want to get my hopes up, but now I am getting very excited.
Hopefully we'll have the approval soon...