The Anatomy of Short Sales. Part 3 of 7: Submitting a Short Sale Package To Your Lender
Lenders are all about the numbers. They know that late payments and foreclosures would be detrimental for them financially so upon providing proof via financial documents that you are in fact struggling or will be struggling with your mortgage payments, they will consider an approval for the sale. However, servicers are extremely particular about complete short sale packages (i.e. updated documents, missing documents or signatures) and many short sale files have closed due to insufficient effort and organization in this area.
This is another crucial step that makes it critical for you to find an expert agent who is superb in organization. If you have ever attempted a loan modification, you would know what I am talking about. They are very strict on proper financial documents and it being submitted in a timely manner. These are the documents that are typically needed (required documents vary depending on the lender) for a complete short sale package:
- Cover Letter
- Authorization to Release Information
- Sellers Hardship Letter
- Seller’s Financial information
- 2 years w2′s
- 2 months pay stubs
- 2 months bank statements
- Supporting Hardship Info – HOA liens, medical/disability statements etc.
- Repair Estimate for the property
- Comparable sales for the property
- Contract
- Net Sheet
- First mortgage holder may ask for a payoff amount from the 2nd
- Second mortgage holder may ask for a payoff amount from the 1st
- Lender may ask for an Initial Title Report
Please read my previous article about the key factor to a good short sale agent. I guarantee that your home put up for a short sale will be in much greater risk of foreclosure if your agent is not proficient in organization.
Next Post: 12/28/11 Wednesday
Peter
