If you are at least one payment late, you are considered a “financially distressed homeowner.”
Unfortunately, just because you are unable to meet your financial obligations, the bank may or may not believe you. Anyone can call and state that they can’t afford their house anymore and that they want to walk away from it. However with proof, banks can be surprisingly easy to work with.
If you are behind in payments, but not yet in foreclosure, a short sale is definitely possible. You’ll start by contacting the workout department. Your property would not yet be in the loss mitigation department. Typically, loss mitigation comes into the picture once the foreclosure paperwork has been filed. People are often confused about what a foreclosure is and what a preforeclosure is. Here is how we define these terms:
Many people consider a foreclosure a property that already went through the entire process and is now owned by the bank. We want to make sure you use the proper terminology so that when you are reading the papers, watching the news, or talking to loss mitigation, you know what everyone is really talking about.
Because financial hardship typically does not happen overnight, gather information from the past two years. Typically, a homeowner begins by missing a payment here and there: being 30 days late on a mortgage payment, missing an insurance payment, being late on a credit card, paying two months of electric at once, and so on. Once the foreclosure is filed, things seem to spin out of control. This is why we want you to gather information from the past two years. It shows the unraveling of your finances.
If you are an investor and bought properties at the top of the market, find articles that show the beginning of the market decline, when your tenants moved out, copies of late payments, and all of the other items we mentioned previously.
Since you are financially distressed, again, proof is your best bet. Start putting your “Proof of Hardship Package” together immediately. Here is a list of information you will need. Gather as many of these items as possible:
We’re sure you get the idea. The more financial hardship you can prove, the deeper the short sale. The deeper the short sale, the easier it will be for you to sell the property and start over.
Something to remember—whether investor or homeowner—whether in distress or not—once a bank accepts a short sale, you must sell the property. The bank wants the property off the books.
If you are ready to sell your home fast, White Sands pays cash for homes in any condition. Contact White Sands today to see how they can help you sell your home.