If something happens and you can no longer create your mortgage payments, your first thought is the most likely going to centre around foreclosure avoidance choices. Selling the house is an alternative, if you don’t owe more about the house than that which it is currently worth. If that’s the case, you’ll need to do a brief sale, and step one is convincing your creditor to accept it. In 2010, lenders have a backlog of foreclosures and short sales. This will impact the time it takes for acceptance and also for closing your short sale. Therefore, begin the approval process as soon as you are aware that you will be selling the home.
Prove to the creditor that you can’t pay your mortgage. The lender will want to see proof that you’re facing long-term financial troubles, such as unemployment, medical problems or even the death of a spouse.
Prove the creditor that you’re bankrupt –you have insufficient assets to cover your debts. If the lender believes that you have assets that can be used to pay the mortgage payment, you will not be qualified for a brief sale. Gather an informal financial statement, such as a listing of all your existing debts and assets.
Obtain a current market evaluation proving that your home will not sell for that which you owe the creditor. A realtor will compile this to you, at no cost. A market evaluation ought to choose the agent two to three days, depending on how active he is.
Compose and send a hardship letter. This letter should contain the reason you can’t pay your mortgage. Also send documents, such as a financial statement, bank statements and pay stubs for the past 3 weeks; include any documents that prove you’re headed for bankruptcy or foreclosure with no brief sale. Call the contact number on your mortgage payment stubs, and ask to whom and where you should mail your letter and documents.