Is your home upside down in value? A short sale is a better option than foreclosure, and can help save your credit score from the disastrous effects of a foreclosure. AHMSI is one of the larger lenders in the US and does offer short sales to borrowers that show a financial hardship and can produce a willing and able buyer for the property.
A short sale will allow you to avoid foreclosure by selling your property for less than the amount you owe on the mortgage. AHMSI must approve any offers and you will be required to meet certain guidelines and conditions. Secrets and shortcuts for a fast short sale with AHMSI:
Offer – A short sale begins just like any normal real estate transaction, the home is listed for sale with a real estate broker. The list price should be at fair market value and all offers must be in writing. Once an offer is received, it needs to be presented to AHMSI along with required financial information from you. Pre-Approval – In order for AHMSI to approve or deny a short sale request they will need to have a pre-approval for the mortgage from the prospective buyer. If the buyer is using cash, AHMSI will need to see ‘proof of funds’ which would be bank/account statements showing the funds the buyer will be using to purchase the home. Documented Hardship – AHMSI is in the business of making money and they don’t like losing money if they don’t have to. They will require a documented hardship letter detailing the financial hardship you’re faced with and why you can no longer afford the home. Appraisal – You must be willing to allow access to a bank assigned appraiser that will evaluate both the exterior and interior of your home and report back to AHMSI an estimated value. This is why it is important that offers are realistic and not too far below the fair market value of the home. Listing History – When reviewing offers AHMSI will take into account the listing history of your property. If the home was listed at a very low price for a very short period of time before the offer was received, this could tell them that it needs more market exposure and cause them to counter-offer with a higher price. It’s best to start at the price you would ask for if you were selling it for profit, and then reduce the price systematically over time until offers come in.
There are horror stories nationwide of homeowners stuck in ‘short sale limbo’, waiting for the lender to approve a short sale (and hoping the buyer doesn’t walk in the meantime). Why is this happening? Many times it’s because the real estate agent working for them doesn’t understand the process, and may be the cause of more delays. Unfortunately, home owners who need to short sell their home don’t realize that they can’t just hire any real estate agent and expect an approval. The real estate broker you hire to short sale your home needs to know exactly what they’re doing or more than likely you will find yourself facing a foreclosure instead.