Your Jacksonville NC Short Sales - Foreclosure Resource Center
Facing Foreclosure on Your Jacksonville NC Home?
10 Options When Facing Foreclosure in Jacksonville NC
If you are having difficulty making your mortgage payments, or unable to continue making payments, you have various "loss mitigation" options, besides foreclosure. Some of the options in the link above are:
- signing a "deed-in-lieu of foreclosure" that conveys the property to the lender
- re-negotiating loan terms (loan modification)
- bankruptcy
It is important to consult with an attorney, an accountant, and other real estate and financial professionals before making any decision.
A "short sale" is another loss mitigation option. In a short sale, the sale does not generate enough money to pay the loan in full, but the lender agrees to release its lein on the property in exchange for less than it is owed. As part of its acceptance, though, the lender may require the seller to sign an agreement to pay the shortage, or it may seek shortage from the seller after closing.
Basic Steps in the "Short Sale" Process
- First, contact the lender and request information on its short sale requirements
- Put the property on the market or "list" property with a real estate agent
- Prepare documentation to comply with lender's short sale requirements (see sample list below)
- Submit completed short sale package to lender with copy of executed purchase contract from buyer of property
- Receive lender's "short sale approval" letter
- Close sale in compliance with lender's short sale approval letter
Documentation from Seller
These are documents typically required from the seller. Putting these documents and information together is the bulk of the work for a seller in a short sale transaction. If the lender has different forms, or additional forms, use those forms.
- Authorization to Release Information - sign a separate Authorization for each loan/lender. All borrowers must sign.
- Financial Statement
- Hardship Letter
- 4506-T Tax Form
- Two (2) most recent tax returns, with all schedules, W-2 and other attachments
- Two (2) most recent pay stubs
- All pages of the two (2) most recent bank statements from all bank/asset accounts
There are other documents and information typically required by lenders, which are produced by real estate agents, attorneys, short sale negotiators, or others.
If you want to talk further about your options to foreclosure, give Walter Whitehurst a call to schedule an appointment 910-650-9887