Thursday, May 29, 2008

Short Sales

This offers useful tips on short sales:

Dear Homeowner,

For each short sale, there will be required paperwork that must be obtained from the Seller. We need to obtain this information as soon as possible. This will make your transaction run a lot smoother. See below the list of required short sale documents:

o Listing Agreement with price included and comps to justify listing
price.
o Purchase Offer/Contract
o Buyers Pre-Qualification Letter
o Authorization to release information ~ This document gives
permission to the agent to speak on the sellers behalf and to obtain
information.
o Financial form ~ List of itemized assets and liabilities.
o Two year’s most recent tax returns.
o Two months most recent paycheck stubs.
o Two months most recent bank statements.
o Hardship Letter explaining why the borrower fell behind/ can not
afford to sell/ which documents may be missing from the package
o Completed Hud1 or Seller’s Net Sheet ~ (Utilize your favorite title
company o provide preliminary propertyspecific information for full
payoff transactions at the time of listing the property.) If it is a short
sale then use approximate figures gathered from the Borrower.

Once you have received an offer on the property, the Loan Servicer may order a formal appraisal report. Try and be patient. There is no definite time frame involved in the short sale acceptance process. Sometimes, weeks or months are required to complete the short sale process. Mortgage loans are sold in bulk portfolios to investors on Wall Street therefore it is the investor that is the ultimate decision maker. I recommend for you to contact a tax professional with regard to the possibility of adverse tax implications that might be associated with a short sale. It takes resourceful, committed and caring Realtors to succeed at successful short sale negotiations. It can be a long drawn out process and your patience is appreciated.

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