If you are a homeowner who is currently a few months behind in paying your monthly mortgage, it is important to consider contacting a Realtor to discuss the possibility of a short sale in relation to your property. Often times, homeowners think that foreclosure is their only option when they have fallen behind on making their monthly mortgage payments. This is not the case.

For individuals who are unfamiliar with the term short sale, it is a property that is sold for less than what is owed to the lender. Of course, the homeowner has to be able to prove to the lender that they are experiencing a financial hardship, and a Realtor who has been trained in dealing with short sales can guide you through this process. Some of the documents your lender may require include a letter explaining your hardship or financial difficulties, recent bank statements, and information regarding separation of employment, if this has occurred.

The Realtor also plays a crucial role in assisting the homeowner in negotiating with the bank/lender, as well as the person seeking to purchase the property. This process can take several weeks, since all parties have to come to an agreement about an acceptable price. Potential offers must first be accepted by the current homeowner and then by the bank, The bank has the final say in whether or not the price is an acceptable one, and will most likely have a new appraisal done on the home, complete with prices and information on comparable homes in the area that have currently sold.

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When buying or selling a home, closing day is an exciting and often long-awaited day on which ownership of a home is officially transferred from the old owner to the new one. Also referred to as “settlement,” the closing process can actually take weeks or months when you sell your home. The entire settlement process does not take place on closing day; rather, it is finalized and ends on closing day.

Steps to Settlement:
When you sell your home, an unbiased third party called a settlement company or title company oversees the settlement process. The settlement/title company becomes involved when you have accepted an offer on your home and are ready to move forward with the process of transferring ownership.

Expect a Variety of Documents
Official documents such as the signed sale/purchase agreement, good faith estimate, and financial authorization letter are sent to the settlement/title company, and the settlement process begins. You may be required to submit other documents depending on the terms of your individual sale. The settlement/title company will contact you, your realtor, or other representative if any necessary documents are missing when you attempt to sell your home.

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