Bank of America Short Sale – Understanding a Short Sale
Bank of America Short Sale – Understanding a Short Sale
A short sale is a sale that helps homeowners who are facing foreclosure, who must sell based on a relocation or life event by having the lending company accept less than the amount owed on the loan. A short sale is a negotiation. You must prove to Bank of America that you have financial problems and cannot and do not have the ability to pay the loan off in full without a short sale. The instances are often are temporary but not always and can include job loss, prolonged illness or a death in the family. At the closing all of the money that is received after paying agreed fees (Realtor commissions or town taxes) is given to the bank as payment for the mortgage.
If you are considering a short sale, you may wish to talk with an attorney and of course a real estate agent that understands the negotiation process. Each bank has the own process and a Bank of America short sale is like any other, they will of course want to receive as much money as they can that is still owed on the loan. Knowing how to package your short sale request will greatly improve the likelihood of your request being approved. This is why you need an experienced professional on your side to help you with negotiations.
No matter how much negotiating you do, Bank of America has the final say as to whether they will agree with the short sale. Often they will agree to a short sale if you can prove financial hardship. If they do not accept the short sale, you likely cannot sell the home without bringing money to closing. Just like when you obtained your mortgage in the first place you should be expected to provide information to help Bank of America decided if they should accept your offer of a short sale. Information they may request includes recent paystubs, bank statements, 401k statements, recent tax returns, and a letter explaining your hardship. They may also want to obtain an appraisal on your property, and detailed information on the local real estate market from your agent.
A Bank of America short sale will allow you to sell your home for less than what is owed. It could allow you to protect your credit better than some of the alternatives. It may take some time for them to approve your request, just like you have already determined this is your best option, they need to make sure that accepting your request for the short sale is their best option.
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