Short Sale Tips: Working With your Lender to Avoid Foreclosure

A Short Sale Can Stop Home Foreclosure & SaveOnce your file has been pre-qualified for a short sale,
Your Credityou will market the property to find a qualified buyer.
Nothing is as detrimental to your credit rating as lateThis means hiring a realtor and, if you can afford it,
mortgage payments and foreclosures. If you haveadvertising your property in your local newspaper or
fallen behind on your mortgage payments and areother real estate publications. Remember, you are not
facing home foreclosure, you should consider using atrying to profit from the sale or cover what is owed to
short sale to sell your home now and avoidyour lender. You are simply trying to stop home
foreclosure.foreclosure and avoid have a foreclosure on your
One of the most common questions that homeownerscredit history by helping your lender recover as much
ask is, "can I still sell my home if I am in foreclosure?" Aof the money they loaned you as possible. It is also
Short Sale is simply selling your property for less thanimportant to remember that the foreclosure process
what is owed with the permission of your mortgagecan be quite lengthy in some states, so don't give up
lender. It is not as complicated as many foreclosureusing a short sale to avoid foreclosure just because
advice experts make it sound, and is one of the bestyou do not find a buyer immediately.
forms of foreclosure help available. There are threeLastly, once you have found a qualified buyer, you will
steps to closing a short sale: short sale pre-qualification,submit your purchase contract and the buyer's
marketing the property, and closing the short sale.credentials (pre-approval letter or proof of funds to
The first step, short sale pre-qualification, is when youclose) to your lender. If your lender accepts the offer,
contact your lender and explain that your financialthen the deal is sent to a title company who will
situation has changed and you wish to avoidfacilitate the closing of escrow. It is also important to
foreclosure by selling your home. Most lenders have aorder any city of point of sale inspections or other
short sale application that can be faxed or emailed.inspections as to avoid delaying your buyer from
The application will tell you what documents you willclosing on time.
need to gather and submit to your lender in order forOnce you have completed these steps, you will have
them to determine if a short sale is an option. Commonstopped home foreclosure and your credit rating will be
documents include paycheck stubs, tax returns,much better, in most cases, than if you had simply
hardship letter, and bank statements. These itemsdone nothing and lost your home through the
show your lender that you are not in a position toforeclosure process. A short sale is a great option to
repay the loan.anyone trying to avoid foreclosure.