Short Sale Tips: Working With your Lender to Avoid Foreclosure

<h1>Short Sale Tips: Working With your Lender to Avoid Foreclosure</h1>Author: <a title="Author" href="http://www.articlesbase.com/authors/author/7169.htm">Author</a> A Short Sale Can Stop Home Foreclosure & Save Your Credit 
 
Nothing is as detrimental to your credit rating as late mortgage payments and foreclosures. If you have fallen behind on your mortgage payments and are facing home foreclosure, you should consider using a short sale to sell your home now and avoid foreclosure. 
 
One of the most common questions that homeowners ask is, "can I still sell my home if I am in foreclosure?" A Short Sale is simply selling your property for less than what is owed with the permission of your mortgage lender. It is not as complicated as many foreclosure advice experts make it sound, and is one of the best forms of foreclosure help available. There are three steps to closing a short sale: short sale pre-qualification, marketing the property, and closing the short sale. 
 
 The first step, short sale pre-qualification, is when you contact your lender and explain that your financial situation has changed and you wish to avoid foreclosure by selling your home. Most lenders have a short sale application that can be faxed or emailed. The application will tell you what documents you will need to gather and submit to your lender in order for them to determine if a short sale is an option. Common documents include paycheck stubs, tax returns, hardship letter, and bank statements. These items show your lender that you are not in a position to repay the loan. 
 
Once your file has been pre-qualified for a short sale, you will market the property to find a qualified buyer. This means hiring a realtor and, if you can afford it, advertising your property in your local newspaper or other real estate publications. Remember, you are not trying to profit from the sale or cover what is owed to your lender. You are simply trying to stop home foreclosure and avoid have a foreclosure on your credit history by helping your lender recover as much of the money they loaned you as possible. It is also important to remember that the foreclosure process can be quite lengthy in some states, so don't give up using a short sale to avoid foreclosure just because you do not find a buyer immediately. 
 
Lastly, once you have found a qualified buyer, you will submit your purchase contract and the buyer's credentials (pre-approval letter or proof of funds to close) to your lender. If your lender accepts the offer, then the deal is sent to a title company who will facilitate the closing of escrow. It is also important to order any city of point of sale inspections or other inspections as to avoid delaying your buyer from closing on time. 
 
Once you have completed these steps, you will have stopped home foreclosure and your credit rating will be much better, in most cases, than if you had simply done nothing and lost your home through the foreclosure process. A short sale is a great option to anyone trying to avoid foreclosure.About the Author: This article was submitted by the Loss Mitigation staff of ILMG. We offer free <a href="http://www.ilmgrp.com">short sale advice</a> and can 
help you <a href="http://www.ilmgrp.com">avoid foreclosure</a> today!Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/finance-articles/short-sale-tips-working-with-your-lender-to-avoid-foreclosure-77537.html" title="Short Sale Tips: Working With your Lender to Avoid Foreclosure">Short Sale Tips: Working With your Lender to Avoid Foreclosure</a>

A Short Sale Can Stop Home Foreclosure & Save Your Credit

Nothing is as detrimental to your credit rating as late mortgage payments and foreclosures. If you have fallen behind on your mortgage payments and are facing home foreclosure, you should consider using a short sale to sell your home now and avoid foreclosure.

One of the most common questions that homeowners ask is, "can I still sell my home if I am in foreclosure?" A Short Sale is simply selling your property for less than what is owed with the permission of your mortgage lender. It is not as complicated as many foreclosure advice experts make it sound, and is one of the best forms of foreclosure help available. There are three steps to closing a short sale: short sale pre-qualification, marketing the property, and closing the short sale.

The first step, short sale pre-qualification, is when you contact your lender and explain that your financial situation has changed and you wish to avoid foreclosure by selling your home. Most lenders have a short sale application that can be faxed or emailed. The application will tell you what documents you will need to gather and submit to your lender in order for them to determine if a short sale is an option. Common documents include paycheck stubs, tax returns, hardship letter, and bank statements. These items show your lender that you are not in a position to repay the loan.

Once your file has been pre-qualified for a short sale, you will market the property to find a qualified buyer. This means hiring a realtor and, if you can afford it, advertising your property in your local newspaper or other real estate publications. Remember, you are not trying to profit from the sale or cover what is owed to your lender. You are simply trying to stop home foreclosure and avoid have a foreclosure on your credit history by helping your lender recover as much of the money they loaned you as possible. It is also important to remember that the foreclosure process can be quite lengthy in some states, so don't give up using a short sale to avoid foreclosure just because you do not find a buyer immediately.

Lastly, once you have found a qualified buyer, you will submit your purchase contract and the buyer's credentials (pre-approval letter or proof of funds to close) to your lender. If your lender accepts the offer, then the deal is sent to a title company who will facilitate the closing of escrow. It is also important to order any city of point of sale inspections or other inspections as to avoid delaying your buyer from closing on time.

Once you have completed these steps, you will have stopped home foreclosure and your credit rating will be much better, in most cases, than if you had simply done nothing and lost your home through the foreclosure process. A short sale is a great option to anyone trying to avoid foreclosure.

This article was submitted by the Loss Mitigation staff of ILMG. We offer free short sale advice and can
help you avoid foreclosure today!

Rate this Article:

5 / 5 stars - 2 vote(s)

Re-Publish

Related Videos
Related Articles
Ask / Related Q&A

Play

Short Sale Secrets Clip 3

Play

Short Sale Secrets Clip 2

Play

Short Sale Secrets Clip 1

Play

How To Avoid The 6 Biggest Foreclosure Traps

Play

How To Stop Foreclosure in Holland

Article Source: http://www.articlesbase.com/finance-articles/short-sale-tips-working-with-your-lender-to-avoid-foreclosure-77537.html

Article Tags: Avoid Foreclosure, Short Sale Advice

Latest Finance Articles
More from Author

Get the Best Government Grant Debt Option

By: Bryan Burbank | 09/07/2009
There is a lot of free grant money that is available for you to use to pay off your credit card debt. To the fact that the economy is bad and the unemployment rate is on the rise we find ourselves more in debt every day. It is a situation that we do have control over when we find a way to get our finances under control. Most people have now found that they can apply for and obtain a government grant that will give them free money today off their bills and get control over their finances. Now

Find Your Free Grant Money For Debt Relief Now

By: Bryan Burbank | 09/07/2009
We all are struggling now with credit card debt and finding a solution is the best option for you. Using a government grant can give you the money that you need to pay off your debt and start fresh. Many people are unaware that they can apply for and obtain grant money that they can use to pay off their debt. We all have used our credit cards too much and this creates a bad situation where we cannot afford to pay the minimum balance. The best thing that we can do is to search online to find a

How to Have No More Debt - Using Free Government Grant Money

By: Bryan Burbank | 09/07/2009
If you feel like you are grounding in debt then you need to find a solution to help you get released today. Many people are finding that using a government grant can help give them the money they need to pay off their credit card bills. During hard economic times it is necessary for many people to use their cards in order to buy things they need. This is okay if you have the money to pay off your debt at the end of each month. In most cases this is very difficult to do and so you end up with

Easy Approval to Get Free Government Grant Money Now - Debt Free With Ease

By: Bryan Burbank | 09/07/2009
Use a government grant to pay off your debt and it is easy to find this money that is offered by the government. There are so many people that are unaware they can apply for and get approved for this money. Make sure that you do not miss out on obtaining a grant to pay off your debt today. Even if you have over spent using you credit cards you can feel at ease because it does not have to be a permanent situation. There can be a lot of stress that comes with dealing with so much debt so make sure

Forex Robots - Factors You Should Consider Before Buying Forex Robot

By: karen fairham | 09/07/2009
You can check it by looking at the version history and pay attention on how often the websites are updated. That's why they dare to give you the money back guarantee. If the sites or its products have not been updated for long time, for example a year the websites haven't been updated...

Wealth Creation - What You Need to Know

By: Ashley Byres | 09/07/2009
Wealth creation is not an easy process. Even those people who inherit tons of money from their parents or long lost uncles realize that money can go dry if you do not do anything to multiply or make it bigger. So, even if you have a billion bucks, if you...

Investment Strategies - Mistakes You Need to Avoid

By: Ashley Byres | 09/07/2009
Not all investment strategies turn out to be positive and lucrative. There are investment schemes that go sour, particularly if the tactics employed are solely based on hunch and speculation. If you are planning to put your money in the stock market with wealth creation in mind, then you have...

Investment Strategies - Top Secrets Revealed

By: Ashley Byres | 09/07/2009
Investment strategies need not be complicated. More often than not, the simpler you approach your wealth creation schemes, the better the outcome will be. Although mathematical equations are helpful in projecting how much money will you earn over time, these equations are not the only things that you need to...

Obagi Exfoderm: Reduce the Effects of Damage to your Skin

By: Author | 14/04/2007 | Health
If you are looking for a great way to begin correcting imperfections on your skin, you need to look into Obagi Exfoderm. Add Obagi Exfoderm to your skincare routine today, get the best possible results for your skin.

Obagi Blender: Helps Restore your Skin’s Elasticity

By: Author | 14/04/2007 | Health
If you are looking for a product that will help restore the elasticity of your skin and give it a better overall appearance then you must try Obagi Blender. When used in combination with a full line of Obagi facial care products you can see...

The Kingdom of Thailand

By: Author | 14/04/2007 | Travel
Why are so many people fascinated from this kingdom? Maybe because it was never colonized by the Europeans and therefore...

Ventrilo and Free Computer to Computer Voice Communication

By: Author | 12/04/2007 | Information Technology
Ventrilo is a Voice over IP program for Windows and Mac OS X. It is very similar to a telephone call, although things such as headsets or computer microphones are used, instead of a physical receiver.

Smoking Shelters - Don't Get your Fingers Burnt

By: Author | 12/04/2007 | Business
The arrival of the Smoking Ban in England, Wales and Northern Ireland brings with it yet more headaches for business owners and employers who now have a whole new series of regulations to consider.

Fishing is Fun for Everyone

By: Author | 09/04/2007 | Travel
Fishing has to be one of the greatest pastimes ever invented. It is also probably one of the oldest. Early man had to eat, and those succulent Salmon would just call to early men as they saw them in the pristine waters of a streambed.

Mortgage Solutions Now - Florida Mortgage, Commercial Loans, Refinance, and Home Loans

By: Author | 03/04/2007 | Finance
I have people calling me all the time asking me why the can't have a $200,000 dollar mortgage only paying $650 a month. The truth is they can, but for some people those kind of loans just aren't good.