RULES FOR A SHORT SALE
YOU must have either defaulted on the loan or have been placed in acircumstance where
default is imminent
NOTE: You do not have to be in default torequest a short sale, however, upon completion of the short sale review you will be atleast 61 days delinquent because the lender will cease to accept payments from youonce the review process begins.
YOU do not have the assets to make up the shortage needed to close the sale.
There must be a cost savings to the VA by allowing the short sale over aforeclosure.
The lender must net at least 88.13% of the market value.STEPS TO A SHORT SALE
CONTACT YOUR LENDER, advise them of your situation, and ask them to sendyou a short sale package to complete.
This package requires a hardship letter (statement explaining why youcan no longer afford the property and request for a short saleconsideration), a list of expenses, & proof of income.
Remember that you, the homeowner, cannot receive any cash from thissale.
CONTACT A REALTOR and ask them to list your home at the current marketvalue. NOTE: Your home’s current market value is obtained through a VAappraisal, which your lender will order once they receive your completed shortsale package and signed sales contract.
OBTAIN ESTIMATED COSTS. Once an offer is received your realtor will need tosubmit a signed sales contract (between you and the buyer) along with anestimated HUD 1 to the lender for their review.
It is advisable that any offer you receive is at the market value.
A HUD 1 is a closing statement showing all charges and the net proceedsto be applied to the mortgage.