Nevada City Virtual Tour

Friday, February 11, 2011

What do I need to do a short sale

This isn't the "carved in stone" package to process a short sale. Consider it a guideline and pretty much the basic starting point for most lenders. You'd likely need no less than these items to effectively submit a package to the short sale lender.

1. Dated, signed listing agreement with commissions listed.

2. Full MLS report from your real estate agent.

3. A seller signed authorization form for the agent and/or attorney to negotiate with the lender on seller's behalf.

4. Signed, handwritten hardship letter explaining the circumstances. This hardship is crucial to approval.

5. A complete seller financial statement.

6. Two (months) recent bank statements.

7. Two months of pay stubs or written explanation of unemployment. Proof of Social Security or pension if receiving.

8. Dated, signed purchase agreement — the sale contract.

9. Buyer's fresh proof of funds or preapproval.

10. Three recent, like-kind, comparable sales.

11. Last two years of seller's tax returns.

12. List of repairs for the residence, if needed.

13. Preliminary HUD1 statement provided by attorney or title.

On a case by case basis there are going to be other items the lender may ask for. They will probably ask for the same stuff more than once, likely twice, possibly ad nauseum. After a few weeks, they may request updated paperwork, statements, proof of funds, etc., because they just have to make sure the sellers didn't hit the megaball between then and now.

You have to try. This is usually a much better option than having a foreclosure and or bankruptcy on your record. Give me a call.

 

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