What constitutes a hardship? It could be a bankruptcy, unemployment, or other reduction in your income. Perhaps you’ve been forced to accept a job transfer to another part of the state or country. It could be a medical emergency, divorce, or even the death of a loved one — especially one of the individuals responsible for making mortgage payments. Start by doing some homework. It’s your obligation to convince the lender that a short sale is in their best interest and that you can make it worth their while, so don’t short your preparation. Research the prices of homes in your area that are comparable to yours. You might need to list your home for less than what it’s worth to attract a buyer — you have a deadline to meet. However, the lender still will expect a fair price for the property, at — or very close to — market value. The lender will obtain an appraisal on the property — sometimes called a Broker Price Opinion, or BPO — to verify its market value. Don’t be surprised if the lender refuses to share the BPO information with you. Usually you, the seller, will not be allowed to receive any proceeds from the sale. If you hire a real estate professional to handle the short sale, they can investigate whether you qualify for the government HAFA program. HAFA might allow you to receive up to $10,000 for relocation assistance at closing. You or your listing agent will send the lender the listing agreement, executed purchase offer, the buyer’s pre-approval letter, and a copy of the earnest money check, as well as proof of funds. Requirements vary from bank to bank, but here are some general guidelines regarding the packet your banker will want you to assemble:
• An authorization letter: You’ll need to notify the bank
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