Getting Approval For A Short Sale Of Your Lexington, Kentucky Real Estate

Written by Miranda Hinchman 01/15/09

 If you are having trouble making the payments on your Lexington, Kentucky real estate mortgage, you may be worried about foreclosure.  You don’t have to have foreclosure on your credit record for the next ten years.  Your lender may accept a deed-in-lieu and protect your credit rating, or you may be able to get the lender’s approval for a short sale of your property.
 

What Is A Short Sale?

A short sale refers to the lender accepting a discounted payoff amount, or accepting less money than due to satisfy the loan.  Not all lenders will agree to a short sale.  Here are some tips on how to get approved for a short sale.

Call Your Lender

Explain to your lender why you are unable to make the payments and why you should be allowed to have a short sale for your Lexington, Kentucky real estate.  You may be asked to submit documentation of your financial difficulties, including bank statements and tax papers. Whatever you do, don’t fail to act. If you fail to take action matters will get worse!

Send In Documentation

The lender may request that you send in proof of your income and assets.  They’ll want to know if you have any money in a savings account or a money market account.  You’ll have to tell them if you have any stocks, bonds or any other real estate that could be liquidated to pay off your debt.

Once you have approval to hold a short sale, you’ll still need to submit more paperwork to the lender.  You can ask your real estate agent to fill out the preliminary net sheet that the lender requires.  This form will show what you expect to sell the house for and what the net profit will be after all loans are paid off.

After you find a buyer, mail in a form showing the offer and a copy of the listing agreement.  The lender still has the option to refuse to approve the sale if the terms don’t meet their requirements.

A short sale may be your ticket to avoid foreclosure on your Lexington, Kentucky real estate.

Ready to work with a professional real estate agent who can guide you through the complicated process of a short sale?  Call me today at 859-621-8073 or email me here.