Coastal REO Solutions of Myrtle Beach, SC specializes in short sale marketing and short sale negotiation. 2012 is very important year for homeowners trying complete a short sale. There are tax advantages that are set to expire in 2013, so now is a good time to get your financial house in order to take advantage of this money saving program.

 This article can help you make a good business decision about your home and your finances if you fall in to any of these situations. It’s best to start work as soon as possible. Even though it’s called a short sale, without the proper guidance the process can be very lengthy.

• You are behind on your home mortgage payments
• You are in an interest-only home loan and/or “underwater” on your mortgage
• You lender is threatening, or has began foreclosure
• You are thinking about a short sale on your home

 At Coastal REO we understand what a difficult time people have making a decision about buying or selling a home. Deciding to do a short sale to avoid foreclosure is even more difficult, but it can be easier by simply looking at it as a business decision and trying to take the emotion out of the situation. This is how your lender looks at a short sale, as a transaction to get the most value out of an under-performing asset. It may be harder for you because it’s YOUR home, but you have to look at it without your emotions to have a level playing field with the bank or lender.

 You may ask yourself: “Why would I short sale my home instead of just letting it go into foreclosure?” There are several great reasons to do a short sale instead of a foreclosure.

1. YOU stay in control in a short sale instead of banks and lawyers controlling a foreclosure
2. A Short Sale is less damaging to your credit. FICO estimates a drop of 85-125 points vs. 250-300 in a foreclosure
3. A South Carolina foreclosure is a Judicial Procedure and comes with the public scrutiny of notices, hearings and court dates like all matters of public record.
4. Lenders are aggressively pursuing the Short Sale route, and some lenders are offering the Seller a substantial financial incentive to cooperate.
5. The new Servicing Alignment Initiative introduced by the FHFA will pay loan servicers to reach out to borrowers who are behind on their mortgage payments.

 The object of a short sale is to negotiate a sale of your home with your lender, and one that will be in your best interests moving forward. Before that can happen, you need to have a buyer in place with a Purchase Contract on your home. The best way to achieve this is to price your home aggressively. You need to find a price point that will get you an offer on your home in 15 to 30 days. This is where the expertise of a Coastal Solutions agent can be vital. We can help you find the perfect price because of our in-depth knowledge of Myrtle Beach home prices and sales trends.

 The next step is to have all your financial information ready and have copies on hand for your lender. There are quite a few documents you will need in a short sale and having a packet with these papers in it will speed the process along. Remember, the income tax break for a short sale ends this year and the short sale process takes time.

1. Your tax returns for the last 2 years
2. Your 2 most recent bank statements
3. Your 2 most recent pay stubs
4. If you are self-employed, a year to date P&L and personal financial statement will likely be required

 The mortgage lender looks at these documents to help verify your “hardship” eligibility and understand why you can’t pay a mortgage as agreed. There are many different types of hardships and Coastal Solutions understands how to present your situation to a lender so that you can secure a short sale.We know this is a very difficult time in your life, but if you call us at 843.839.8046, we can help you explore your options to avoid foreclosure and possible damage to your credit scores.

 Now is the time to make a hard decision and answer some tough questions about your mortgage. Are you going to walk away from your underwater home?  Do you want to stop further damage to your credit in hopes of buying another home in the near future? Are you going pursue a short sale to avoid foreclosure? Who can help me deal with my lender? Coastal REO Solutions is ready to help when you are ready to begin.

 Call or use our Contact Form to reach Coastal Solutions of Myrtle Beach today if you are faced with the possibility of Foreclosure or have a question about the Short Sale process.

This entry was posted on Tuesday, January 24th, 2012 at 9:09 am and is filed under Foreclosure, Mortgage, Short Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.