Short sale is a last effort to avoid foreclosure. You will still lose your home, but will avoid the cost, hassle and credit damage associated with foreclosure. In order to short sale your home, you must contact your bank and prove you are unable to pay your mortgage. If your bank agrees, you will sell the house for less than you owe and the bank will agree to discharge the remaining balance. Your lender may require you to pay part or all of the remaining balance depending upon your financial situation. Short sales Miami may be a good option for you if you are several months behind on your mortgage payments and worried you may be forced into foreclosure in Miami. Contact Miami foreclosure attorneys to find out if short sale is a good option for you. Here are the steps you can expect.
- Put your property on the market for short sale. It is very important that your realtor is experienced with short sale and the buyer is aware of how short sales in Miami work. Once you have a potential buyer, it is time to approach you bank and see if they will agree to it.
- Contact your lender and apply for short sale. Every bank handles short sales differently, but there is basic paperwork all banks will require. You will need to provide bank statements for the last 60 days, two years worth of tax documents and any other accounts you have including retirement or investment documents. You will also send a letter of hardship detailing why you are unable to make your payments and what you have done to try to fix the situation. For example, are you drowning under medical bills, did you lose your job or were you recently divorced? After you send the paper work in, you bank will consider you request. Be prepared to wait while the bank evaluates your offer. This period could take a several weeks, and it is important that your buyer is prepared to wait.
- The next step is the final review. This period will include a flurry of requests from the bank. Be ready to provide any additional paper work your bank requests including updated financial information and paperwork verifying the buyers financing. This is a good step which means the bank is seriously considering your offer. Keep on top of things and make sure you submit paperwork as soon as possible. You should also check with your buyer to ensure their financing is in order. You will also find out if your bank will be willing to wipe the slate clean and release you from your obligation to the remaining balance.
- If your bank agrees to the short sale, you will move to closing. You will have 30 days to finalize the details and sign the paper work. Once all the money and papers have been finalized you will sign over the house and be mortgage free.