Tips for Successful Short Sale

Getting a short sale approved may seem like a long shot, but it’s not as hard as the banks make it seem. Sure, there’s a good bit of waiting involved and not everyone gets a green light from their lender. But there are things you can do to get your short sale application moving faster and increase your chances of getting approved. Read on for some short sale tips that can make all the difference between a successful short sale and a foreclosure.Make your paperwork completeShort sales, just like any foreclosure prevention plan, entail a fair bit of paperwork. And while sellers used to get away with incomplete documents, new rules now require you to present them all up front. This helps the bank process short sale applications faster and reduces the volume of applications. Before starting, get a list of short sale requirements from your lender and double-check your package to make sure everything you need is in.Write a convincing hardship letterThe hardship letter is one of the most vital elements in a short sale. A good hardship letter makes sense out of the bank statements you’ve submitted and convinces your lender that a short sale is really your best option. Make it brief but detailed; most agents don’t want to spend more than a couple of minutes on a letter. State your main idea within the first paragraph and make sure you can back up each claim with solid evidence.Hire a short sale attorneyAn experienced lawyer can give you valuable tips on planning your short sale and getting short sale approval from your bank. They can also help you with legal issues such as lending fraud and credit report errors. An attorney with short sale experience will also have useful connections with the bank, which can get your application to the top of the file faster. At the very least, you’ll save hours of phone time trying to get to the bank’s short sale office.Do your researchApproach your lender with a solid idea of how the short sale process works and what you have to offer. Start by looking up property values in your area and comparing them with your own; that way, all your lender has to do is confirm it to see that your home cannot sell for enough to cover your unpaid balance. A short sale agent can draw up a list of comparable property values for you, which you can attach to your short sale application.