Real Estate Short Sale Process In Ohio

Foreclosures in Ohio are unfortunately rising and will continue to rise until the end of 2014 or beginning of 2015. I have developed a “short sale” system that effectively battles foreclosure and succeeds where other real estate agents have failed.

Short Sale Information – What is a Short Sale?

You may be asking yourself, “What is a short sale?” Short sales are carefully agreed upon sales of a property for an amount less than the mortgage amount balance. Short sales allow the bank or mortgage lender to essentially sell the home and cut their losses.

When an individual or family is facing foreclosure, it may feel like the bank or mortgage lender is the ultimate winner – this is absolutely false. Many people fail to understand that when a home owner is facing foreclosure, it also costs the bank and the lender a considerable amount of money as well. For this reason, short sales” are generally reserved for certain cases when the bank or lender decide that it’s in their best interest to sell the home and take a loss instead of enduring costly foreclosure proceedings.

Can I Avoid Foreclosure? – What Is A Short Sale Process in Ohio?

Basically once you’ve weighed the alternatives and you’ve decided on a short sale vs foreclosure, you will petition the mortgage company (lender) for a short sale. Generally, to process a short sale you will want to follow these important steps:

Your home or piece of property must be listed by a licensed Ohio real estate agent.

The following documents will need to be submitted:

A Hardship letter! The hardship letter should include an explanation of why you are currently facing a foreclosure or short sale situation and should also explain the fact that you are trying to avoid bankruptcy.
Documentation supporting the explanations listed in the hardship letter ie…. divorce, job loss, medical, bills, etc.
Complete financial statement – An overview of your monthly budget.
Previous pay stubs (at least three months)
Previous income tax returns (at least two years)
Bank statements (previous two months)
If unable to provide pay stubs, tax returns, or bank statements, you’ll need a notarized financial statement.
Copies of current mortgage statement(s)
If you have sought the advice of an attorney, you’ll need to provide corresponding documentation.

Final Steps Concerning Dayton Ohio Short Sales:

Upon completion of the guidelines listed above, we will then submit your file for review by the mortgage company’s loss mitigation department. The mortgage company will then hire a 3rd party BPO (broker price opinion) specialist to determine the actual/current value of property in question. Once the property value has been determined, the holder of your 1st mortgage will determine what they will allow the 2nd mortgage to have.

In some cases, the holder of your 1st mortgage will only allow $1000-$5000 to the 2nd mortgage holder. Once the final review of your file has been completed, approval of a short sale is either issued or denied. Once your home is approved for a short sale, we will determine a closing date. An important note to remember about short sales: some homes sell in as little as 60 days, while other homes take 3-4 months to sell.

Important Note:

HUD & FHA loans have certain guidelines

Are You Facing A Possible Short Sale Situation?

If you are facing a possible short sale situation or you would like more information on the short sale process in Ohio, please give us a call at (937) 490-9743. If you are interested in buying a short sale home or if you would like to to be placed on our short sale list, you can email us at info@ohiorealestateguys.com