Here's something I found on the One West Bank (formerly Indymac) website.
Short Sales: What, Why and How
July 7, 2010 – 01:17 PM PST
Want to sell your home, but property values have decreased to less than what you owe?
Denied for a loan modification and want to try something else to avoid foreclosure?
Have a buyer for your home, but for a price lower than what you owe?
If any of these sound familiar, we’re here to help inform you about the process and potential benefits of a short sale. Not quite sure how a short sale works? No worries. Keep reading and take advantage of our informative short sale video, and we’ll do our best to answer your questions along the way.
What’s a short sale?
A short sale is just that—the sale of your home for a price that falls short of the amount you owe on your mortgage. What’s the benefit to you? You get to settle your mortgage debt and avoid foreclosure, even if property values have declined in your area.
So, how does it work?
A short sale isn’t as complicated as you may think. We’ve provided a streamlined checklist in our short sale application packet that explains everything you’ll need to apply. In short, here’s the step-by-step process of how it works:
1. Secure a buyer for your home. (The buyer will sign a purchase contract and provide proof of financing, such as a pre-approval letter for a new home loan.)
2. Submit your completed short sale application to IndyMac Mortgage Services. This includes:
- All pages included in the short sale application
- Recent bank statements
- Proof of income: paystubs, tax return, etc.
- Listing history
- Executed purchase contract
- Purchaser eligibility certification
- Proof of buyer financing
- Estimated settlement statement
(The above items are explained in detail in the application for your convenience.)
3. IndyMac Mortgage Services will contact you to estimate the value of your home’s sale price.
Why is a short sale better than foreclosure?
Now that you know the basics of applying for a short sale, you might be asking… how is this option better than foreclosure?
When foreclosure occurs, a homeowner is forced to vacate the property and may encounter legal issues and costly fees involved with the foreclosure process. This is undesirable for both the homeowner and the lender.
In a short sale, a homeowner enters into a mutual agreement with the lender to end the mortgage. This is reflected on your credit report as “negotiated settlement of debt,” which may be less damaging to your credit than foreclosure.
For more information on the credit or tax implications of pursing a short sale to avoid foreclosure, we suggest you consult with your broker, accountant or other professional adviser.
I want to apply for a short sale. How do I start?
First things first. It’s important to keep in mind that when you apply is very important.
Once you’ve decided that you want to pursue a short sale, apply as soon as possible. If foreclosure proceedings have already begun on your home, please note that your short sale must be APPROVED at least 15 days prior to the foreclosure sale date!
If you’re ready to apply, click here to download our short sale application packet.
Once you have a buyer lined up, have completed the application, and made sure all parties have provided all of the required signatures, fax the entire packet to us at 1.626.583.1370 so we can begin processing your application right away.
What else should I know?
After you’ve submitted your application, you’ll hear from us within 30 to 90 days regarding the status of your application and if any additional documents are needed. For your convenience, you’ll be assigned an IndyMac Mortgage Services Workout Analyst, who will help you every step of the way.
Still have questions? Don’t hesitate to give us a call at 1.877.908.HELP to learn more about this and other alternatives to foreclosure.
Regards,
Michael Hon
CEO, The Iron Eagle Realty Team
Associate Broker, Market Pro
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com
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