Are you helping sellers with short sales? Part of the lender’s process will be to verify if your seller has a true financial hardship. Short sale lenders analyze the information you provide, including paystubs, bank statements, tax returns and the financial worksheet. They will run a credit report, they will review bank statements line by line, and they won't just gloss over the financial worksheet.
If something does not "add up", be prepared for the following questions and requests:
1. Why do you list a car payment expense, when your credit report shows it’s paid off?
2. Why do you show credit card bills higher than what is on your credit report?
3. How are you spending $6,000 a month on bills, when you have no income or savings?
4. What was the $15,000 withdrawal from your bank statement last month? Where did it go?
5. What is $2000 per month “miscellaneous” expense? Please itemize this.
6. Provide a copy of your bank statement from account XYZ, that was used to transfer funds into your checking account.
7. Provide a copy of ABC bank statement that you listed when you first bought the property.
8. Why are you listing a mortgage expense from a house you have sold?
9. What happened to the $70,000 capital gain from your last year tax return?
10. Why are your food expenses $1000 per month for a two-person household?
Of course, you cannot be a detective or a private investigator, but you don’t want to be a party to deceit. Question your sellers when something seems amiss.
If it looks like fraud-- run!
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Destin FL Real Estate
Destin Short Sales & Pre Foreclosure Help.
www.ShortSaleSuperstars.com for agents
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email Wendy to sell your home or buy a home: itswendy@rulnickrealty.com
Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine".
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Wendy, these are tough questions that most sellers are hoping will not be asked...and no matter how well prepared we are for the possible letter of denial (of the short sale request) sellers seam genuinely surprised when their lender calls them on these...fudged facts. I tell sellers your lender loaned you money they want to be paid back...and they have the ability to check your financial info, so if you are trying to pull one over on them you will be discovered (and possible legal action my result). Be Honest and let the chips fall where they may. You may or may not qualify for a short sale, if you have the means to pay-off the deficit you will be asked to.