What Should I Expect When I Sell?
1. A less severe hit to your credit history than what you'd experience with a foreclosure.
2. You continue to live in your house until the sale takes place.
3. In some cases, banks are offering homeowners cash incentives to do a short sale (to help with sales and moving expenses). Because your credit history won't take as long to recover with a short sale as it would with a foreclosure – an average of two years versus seven years – the short sale option is great for sellers who want to own a home again in the near future. Has your bank already contacted you? Some banks have launched programs to prequalify homeowners for short sales. Through their records and housing data, they identify borrowers on their books who are in negative-equity situations. In this case, some are reaching out to borrowers in an attempt to further streamline the short sale process. This makes it much easier for you, the seller, to proceed with a short sale.
Compiling your short sale package
Short sales require different paperwork than a normal home sale. In some instances, as mentioned above, your bank may have already qualified you for a short sale. In other cases, you and your agent will need to submit certain paperwork to your lender. Your lender then decides whether or not to approve your request for a short sale.Just what goes in a short sale package? Each lender is different, but in general, you will need:
Completed financial statement
Letter of authorization to let your agent speak to the bank
Letter that explains your financial hardship
Two years of tax returns
Two years of W-2s
Last two months of bank statements
Recent payroll stubs or other proof of income
Comparative market analysis or list of recent comparable sales Keep in mind that banks' processes vary, and the above list is a general representation of what many will want to see.
New federal guidelines shorten the wait
In the past, the notoriously long waiting game for short sales deterred many buyers from attempting them. But times have changed. Many banks have streamlined the process and removed the barriers that have hamstrung short sales in the past. Some are even prequalifying borrowers to get the ball rolling faster. In addition, federal guidelines have helped shorten the wait for mortgages owned by Fannie Mae and Freddie Mac. These are great changes for buyers and sellers, because it means there are regulations in place to help shorten the process.
Get In Touch
Share
Local Expert Updates
Matt Lippon
Cell: 712.330.0604
Greg Sheeler
Cell: 712.330.1573
Brooke Jones
Cell: 641.420.2172
Janie Eick
Cell: 712.339.0574Community Updates
Katy Lynn Boutique
Katy Lynn Boutique is a fabulous women's clothing store offering a wide variety of clothing, shoes, jewelry and more. Excellent customer service with all hands-on-deck in helping you find that special outfit. You can also place clothing orders online. A fun clothing store that is sure to impress!
Kiwanis Park
Kiwanis Park
1100 23rd St
Spirit Lake, IA 51360
Close to the schools, Fareway Grocery and the bike trails, Kiwanis park offers a Shelter house, access to the bike trail system, good playground equipment, especially for younger kids, grills, park benches, picnic tables and has handicap-accessible restroomsKiwanis Park
1100 23rd St
Spirit Lake, IA 51360
Close to the schools, Fareway Grocery and the bike trails, Kiwanis park offers a Shelter house, access to the bike trail system, good playground equipment, especially for younger kids, grills, park benches, picnic tables and has handicap-accessible restrooms
All Pets Animal Clinic
All Pets has always gone above and beyond for our pets, providing amazing customer service, and pet service for years. Dr. Roti has always been so informative, and kind to us and our pets whenever our pets have had any illnesses, and even emergency care needed in the middle of the night. Their staff really loves each animal that walks into the door, and they put you at ease when you need to leave your pet over night. All Pets has state of the art diagnostic equipment, making them by far the best veterinarian clinic in the area. We wouldn't trust our pets with anyone else!