If you are feeling overwhelmed by your mortgage, and you need to get relief from the repayment obligations, your best option might be to go through a short sale. In order to do this, you will need approval from your mortgage lender. In the best-case scenario, they will permit you to go through a short sale and write off the mortgage, even if the equity generated from the home is not sufficient to do so.
Going through a short sale is difficult for a number of reasons. It is important that you understand the steps required before embarking on the process.
Confirming the insufficient equity in the home
In order to get a short sale approved, you will generally need to show that the equity in the home is lower than the mortgage value. Therefore, you will need to have your property valued to confirm that this is the case.
Preparing a hardship letter
You must also prove financial hardship to your lender before going through a short sale. You can do this by preparing a hardship letter to explain your financial situation and why it is no longer possible to make mortgage repayments.
Getting a short sale application
You will then need to speak directly to your lender to apply for a short sale. This can be challenging to do because short sales are not in the interests of banks. You will need to show that this is your lender's best possible option.
If you are going through a short sale in New York, it is important that you understand the entire process so that it can be done efficiently.