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Short Sale Definition & What Info to Provide the Lender & Realtor

Here's my definition in a nutshell: A short sale is nothing more than negotiating with loan holders a payoff for less than what they are owed. Otherwise, a sale of debt generally on a piece of real estate, short of the full amount owed. It does not extinguish the remaining balance unless this is clearly settled in the acceptance of the offer. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing since there are legal and other carrying costs that are associated with a foreclosure. This occurs on a daily basis since many homes have loans that are considerably higher than the current value of the home. If you would like my Homeowner's Short Sale 16-Step Instructions emailed to you please contact me through this blog site.

Latest Hoop to Jump Through when Qualifying for a Home Loan

Hear Ye Hear Ye All Loan Applicants! The lending industry continues to tighten the underwriting rules on every facet of the mortgage process. In the past few weeks, lenders have had several investors make it a requirement to verify the source of an applicants' earnest money deposits. Previously, the industry standard was to only verify deposits that were greater than 2% of the sales price, or that were part of a gift from a family member---and that verification process was pretty loose.

As you might imagine, now that lenders are looking at these deposits more carefully, they are finding all sorts of situations from credit card advances, money from friends and employers, or money they can't track at all. BIG PROBLEMO for you the Buyer!!!

Sooooo...all you loan applicants out there....your latest loan process hoop to jump through will be to generate a paper trail for your earnest money just as you would for a gift or the sale of an asset. Are we having fun yet???