Ally Bank Short Sale
Ally Bank is the new name of GMAC Financial Services, one of the leading mortgage lenders in the U.S. Borrowers seeking for financial assistance from the bank now deal with Ally, whether for loan modifications, refinancing, or foreclosure help. One of the most popular solutions it offers is the Ally Bank short sale, wherein the bank agrees to a discounted payoff so that the borrower can sell off the home for less than the outstanding balance. This guide offers a few tips for borrowers looking to benefit from an Ally Bank short sale.
How to Qualify for Ally Bank Short Sale
First, you need to send in an application for financial assistance, as it’s the bank who will decide whether to do a short sale or recommend some other solution. The best candidates for an Ally Bank short sale are those who owe more on their homes than it is currently worth, or who can no longer afford to live in it. Usually, the bank checks for less drastic solutions such as a loan modification or repayment plan before resorting to a short sale.
What you Need
Borrowers have to fill out a financial analysis form and submit it along with a bunch of documents, including bank statements, tax forms, your latest mortgage bills, and pay stubs or other proof of income. You should also include a hardship letter explaining your situation and justifying your proposal. If you’re working with an agent, the bank will also ask for a letter of authorization allowing him or her to access your financial information.
How Much to Sell for
Once you’ve been approved for an Ally Bank short sale, you can list your home and start looking for buyers. The bank requires you to list the home at fair market value and forward any offers to them for approval. Take into account the commissions you agree on—Ally Bank short sale investors will only allow commissions of up to 3% for single-broker transactions and 5% for those with two brokers.
Choosing an Agent
The best way to ensure a successful Ally Bank short sale is to work with a short sale agent. A good agent can guide you through and speed up the Ally Bank process, which can be useful since short sales work on a tight time frame. It does cost you more upfront, but it also gives you the expertise and connections you need to get ahead and get a good deal.