What is a short sales package?

Short sale package is a term used for documents presented by a mortgage creditor by the house owner and are looking for the creditor's authorization for short sales. Short sales occur when the house is sold for less than currently owed on a loan and the seller is also unable to pay the difference.

Home owners usually decide to make a short sale if they are no longer able to make mortgages, but do not want the house to get into the market. Market closure often negatively affects individual rating; So many people will try to avoid the closure of the market if possible. It should be noted that short sales will also negatively affect an individual's rating. However, many people believe that short sales will not be considered negatively as the closure of the market.

Short sale generally causes financial loss to the creditor; Therefore, the creditor must grant a brief sale permission. In a sense, the short sales package is the owner of the house "sales playground" persuadingt creditors to approve a short sale. The short sales package consists of documents that the creditor requires from the owner of the house looking for sale. The bank will want to know the details and specifics of the seller's situation to determine whether to approve a short sale.

It is very important that the seller makes a convincing argument that short sales are not necessary, but are in the best interest of the creditor. Exclusion on real estate and after the bank is a costly and time -consuming process. The owner of a house who is able to make a case that short sales approval is a better choice than exclusion on real estate, is a better chance of approval of short sales.

Short sale package generally contains the following documents:

• cover letter.
• Authorization to release information. This gives the banking permission to talk to the seller's representative.
• letter. A letter with a bowel can be one of the most importantMore than a short sales package, because it is an explanation of the owner of the house for the bank, why he is unable to make payments on the mortgage and why he will not be able to repay the mortgage.
• Documents to promote demands on difficulty. This may include medical accounts, a statement of disability and the certification of job loss.
• Financial information. This includes Paystubs, tax information, bank statements and investment statements. The bank will use this information to verify that the seller is indeed in financial need.
• Sales listing for comparable houses in this area.
• Detailed statements of statement and cost of all necessary house repairs.

A house owner who is interested in short sales should have time to understand the process. It is very important to know and understand exactly what the bank requires. Any omission of Documents can delay the process of approval, at the expense of the owner of the house, which is trying to sell the house before starting the market.