The proofs in the pudding

When you start the short sale process, one of the first things a lender will look at, is your financial statements. You will need to submit a breakdown of all of your monthly bills. That would include your car payments, insurance, health insurance, prescriptions, gas, electric, phones, internet, groceries, gasoline, basically everything that costs you money!  You will need to show there are more bills than money coming in every month. There could have been a loss of a job, a spouses hours cut, illness, death or any other imaginable thing that is hindering your ability to make your payments.

The numbers will show it, the hardship letter will explain it and the bank account will prove it. The proof is in the pudding.

You need to back all of this with the proof. You won’t be approved for the short sale if you have a lot of money in the bank and making enough money monthly to cover the bills. A short sale isn’t for the homeowner who is just bummed the home has dropped in value. We’re all there!

This is the opposite of what you need to do if you are going for a loan modification. A misconception of people doing a mod is that when they submit their financials, they make themselves look broke. You need to show that you CAN make the house payments if they give a chance. So you need to tighten the belt and cut back on the 40.00 pizza in and have some hamburger helper! So please if you are trying to save the home, show the money.

If you are honestly hurting you can get the help you need. Be it a short sale , a loan modification or a deed in leiu of foreclosure. The banks are working with people. It’s not on the timeline everyone wants, but they are working on it. If your upside down on the home, call us to see if we can help.