The Short Sale Package
What's Included In The Short Sale Package?
You might be wondering what people are referring to when they say the "short sale package". While not knowing can lead your mind to think of the strangest things, it's really quite simple. In fact, it's very similar to the package that you would submit if you were going to purchase a home (with a few differences). Let's review:
A lender who is considering a short sale pacjage will always request that a package be sent in. Most lenders have the same requirements, so you can prety much know what to expect when you start talking to the loss mitigation department about the short sale. The only real difference between lenders is that some require that the documents be filled out by the homeowner on their forms, instead of submitting generic forms. You will become familiar with them as you work on different short sale files.
When you are preparing your short sale package, you wantto make sure that you have everything in there that they bank ahs requested. If for some reason you can not provide it, then insert some documentation with an explanation as to why you can not provide it.
Here's the items that will need to be in your short sale package:
Hardship Letter - this is a letter that is written by the homeowner describing their current situation, and why they fell into economic hardship.
Two years of income tax returns (self explanatory)
Two months of bank statements. If the homeowner does not have a bank account, then add documentation ( a letter) stating this fact.
Two months of pay stubs
Financial Statement (Most of the time you can use a generic financial statement, but some lenders require that they be written on their specific financial statement form.
Authorization to Release Information. This will allow someone other than the borrower (homeowner) to speak to the bank about the loan.
Supporting Hardship Info – HOA liens, medical/disability statements etc.
Repair Estimate for the propert. This shouls be done by a contractor. Obtaining more than one estimate is helpful.
Comparable sales for the property. If you don't know how to pull comps, you can ask your local Realtor (everyone knows a Realtor) to pull 3 actives and 3 sold comparable properties to send in with your short sale package. You can also try some websites like Cyberhomes and Zillow, although they are not deemed 100% accurate.
Purchase and Sale Agreement or Option To Purchase Agreement
Net Sheet. This will show the bank or lender just how much money they will walk away from the deal with after everything is said and done.
And there you have it. In a nutshell, those are the components of a short sale package.
If In Doubt, Get Some Help!
There are so many opportunities available these days with pre foreclosures and short sales. It is definitely time for you, as a real estate entrepreneur to cash in on these opportunities. If you're not sure how to get the short sale process going, or just wish someone would take care of that part for you, then your prayers are answered. Use a professional short sale mitigation service and let your business continue to grow.
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