A short sales proposal is a proposal used in real estate business when the loan borrowed exceeds the amount of money incurred from sale of a property. Private estate holders resort to this method to stop sale of their houses in advance and yet repay the loan by coming to an agreement or negotiation with the lender.
Sample Short Sales Proposal
Name of the money lending agency: Builder’s Bank
Name of the person who has borrowed the loan: Mr. Ashton Biker
Amount of loan borrowed: $40, 000000
Date of loan taken: 4th April, 2009
The basic premise of the proposal contains the following matter:
I had borrowed a loan against the mortgage of my house in the outskirts of the city (5, Countryside Street, California). The repayment of the loan was due to be completed by 5th April, 2011. However, due to limited returns from the investment of the loaned amount and business losses I have not been able to make the payments as per agreement thus violating the terms. I, therefore, stand liable to your discretion regarding sale of the property.
Estimated amount of the mortgaged building and its precincts: $30, 000000
Since the estimated amount falls short of the loaned amount, I have the following propositions for you:
- If you consider bringing down the amount to equate it with the estimated price of the property, you can take the rights of the building and sell it according to your convenience.
- I can pay the balance amount in quarterly installments and reimburse the loaned amount if the interests against the loan are exempted.