Short sales are all over the news these days as they are a potentially effective exit strategy for homeowners whose mortgages are underwater.
What is a short sale? In case you’re not familiar, a short sale is where the sale price of a home is less than the underlying mortgage. And the bank is willing to eat the difference (known as the “deficiency”).
While short sales are a useful tool for homeowners, they can also be complicated as there are a number of moving parts in the transaction. One thing you can do to help your cause, however, is to be prepared. Therefore, we’ve provided a list below of…
7 Items You Need for a Las Vegas Short Sale
1. Hardship letter: This is a letter that summarizes the financial trouble you’re facing and explains the reasons why you need and are seeking a short sale.
2. Statement of your finances: This should list all of your income and your expenses.
3. Paycheck stubs: These should be from the previous 2 months (or most recent 2-month period)
4. Bank statements: Get your bank statements from the past 2 months. If you can’t find them, ask your bank. If you use online banking, you can also usually download them and print them out.
5. Income tax returns: You will need your tax returns form the previous 2 years.
6. Statement of Profit & Loss: You will need this only if you are self-employed.
3 Additional Items You May Need for a Las Vegas Short Sale:
1. Your mortgage statements along with any documents or notices received you’re your mortgage lender.
2. A statement of any Homeowners Association (HOA) fees owed (if you are part of a Homeowners Association). This should show whether you’re current on payments and whether any payments are due.
3. To sign a form that authorizes the listing agent to proceed with any discussions or negotiations with the mortgage lender on your behalf.
Timing can be extremely important to the success of a short sale. As a result, it’s important to emphasize that any preparation you can do to help the process go smoothly will go a great way towards helping your cause.
If you need help with a short sale or with foreclosure issues, please contact a Freedom Law Firm attorney for a free initial consultation. We have extensive experience with short sales in Las Vegas and can help you move forward with your financial life.