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REALTORS May 20, 2010 Warrenton, VA 5/20/2010 8:30 a.m. 4:30 p.m. Lord Fairfax Community College 6480 College Street Warrenton, VA 20187 www.VARealtor.com/SFR Credit card users fax form to (804) 212-1415 Greater Piedmont Area Assn. of REALTORS 47 Garrett Street Warrenton, VA 21086 PHONE: (540) 347-4866 E-MAIL: Kristina GPAAR.net www.GPAAR.com.

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Short sale package: The borrower has to prove financial hardship by submitting a financial package to their lender. The package includes financial statements, a letter describing the seller's hardship(s), and financial records, including tax returns, W-2s, payroll stubs, and bank statements.

For a short sale to happen, both the lender and the homeowner have to be willing to sell the house at a loss. The homeowner will make no profit, and the lender will actually lose money for selling the house for less than the amount owed. A short sale is not a do-it-yourself deal.

lenders will not consider a short sale if the loan payments are current. lenders may not allow a short sale if they discover other assets the seller concealed. a chronic history of seeking and exceeding higher credit limits. job loss / unexpected unemployment.

Despite the benefits involved, a short sale can be problematic. The process is complex and drawn out, which can make the transaction riskier and have a negative impact on the finances of buyers, sellers and lenders.

Banks are businesses and, just like any business, they are seeking to earn a profit. If it costs more to foreclose over agreeing to a short sale, the bank is very likely to favor the short sale. With foreclosure, a bank takes possession of the house, then resells it at a mortgage auction to the highest bidder.

Unrealistic Buyer Expectations Also, because the lender might reject the first offer—especially if it's substantially lower than the listing price or below fair market value—uninformed buyers and sellers who expect a quick turnaround can get frustrated and bail on the deal before the sale is approved.

In short sales, buyers might need additional cash at closing due to outstanding liens that are not cleared automatically. Transaction fees and potential commission premiums for agents can also contribute to this financial need. Understanding these factors is crucial for anyone involved in a short sale transaction.

The lender will need to see clearly that there is no chance that the property will sell for enough to cover all liens and closing costs. Short sales are considered by buyers to be distressed properties, and will typically command somewhat less than a non-distressed price.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232