- JPMorgan Chase Bank, N.A
- CitiMortgage or CitiFinancial
- Indymac Mortage Services (OneWest Bank)
- Wells Fargo Home Mortgage
- Citigroup Inc.
Whenever a home is worth considerably less than what is owed on it, the property could be very difficult to sell. In many instances, mortgage lenders will approve what is known as a "short sale" rather than taking the risk of a homeowner defaulting on their loan. A short sale means that the real property is sold at a discounted rate, and the amount received is used, under these specific terms, to satisfy the loan. Many people elect to undergo a short sale because they are in danger of foreclosure. Last year, approximately 46,000 New York residents took advantage of the opportunity to complete a short sale according to data from the Department of Housing and Urban Development. If it seems as though a homeowner is likely to default, a mortgage company may approve a short sale rather than attempt to take back the property. This is because the costs involved with foreclosing on a home can be prohibitive, and lenders would rather receive a sizeable chunk of the balance owed rather than racking up these extra fees. Currently 13.5% of the homes on the market on Long Island are short sales. Since all liens against property must be cleared before a home can be sold, many people find themselves unable to pay off their mortgage after selling property that has declined in value. For this reason, those who need to sell their home quickly yet owe more than it is currently worth can benefit from a short sale. Before a short sale is authorized, buyers must typically complete a hardship packet detailing the reasons why they should be approved to short sell their home. This packet will contain information about their earnings, an illness or the details of their hardship; a plea to the bank which states their case and position. If approving a short sale is in the best interest of the lender, the request is likely to be approved. For an example of a hardship package see: