Short Sales - Selling and Buying Property

Short sales allow you to sell a home because you cannot afford to make the monthly payments. In this case, the person who you owe money to is accepting less than the full amount of the loan that you took out for the home. Some people opt for this sale rather than going through a bankruptcy or to have the lender foreclose on the home. Sometimes the lender will not allow you to sell the home for a less amount. They might want the full amount, and if they feel that they could get more money through a bankruptcy or through other means, they will use those means to get the investment. You will need to consult with an attorney to determine whether or not your property qualifies for this sale and if it does qualify, you should listen to advice as to whether or not this option will be good for your situation.

You can also choose to buy a home through short sales, but that could also pose some risks. Many people, however, do get money from a financial institution so that they could purchase homes that are on sale for less than the full price of the loan. Your lender will probably ask that you write a letter discussing how you got into the predicament that you were in, before agreeing to accept less money for the property.

Sometimes people lose their jobs, especially in tough economic times. You might have been sick or a child or other family member might have been sick and required your care. Upon consulting with an attorney, and determining that you will go through with short sales, you should then gather all of the documents that are required by the lending institution. Each situation is different, but you can expect to need to hand over paperwork that shows proof of income and any other money that you might have invested in stocks or other accounts. The lender would simply like to have the reassurance that you are being honest can that you do not have the means to pay back the money that you owe.

Once you have turned in all of the paperwork and have submitted an offer for the sale, the lender and you will come to an agreement. There might be a fair amount of negotiation, in which case, an attorney who is experienced in this process will be invaluable. You also might wish to consult with someone who is skilled in financial matters and can check your numbers in the offer. Short sales can help people who are financially unable to make payments on a home, but they can also impact your credit rating.