I have written a series of posts in the past about short sales, but thought it would be appropriate to post some other questions that I often get asked when we are working on a short sale for a homeowner. 

• What kind of information will the bank ask for?

  • Each bank has their own separate set of forms that they can ask to be filled out. In fact if you have two loans the amount of information can be different between both banks. The types of information that can be asked for as follows:
    • Signed hardship letter
    • Copies of last 2-3 paychecks for all owners of the property
    • Copies of P&L statements if you are self employed
    • Complete financial form - Each bank has their own standard
    • Copy of last 2 years Tax Returns
    • Copy of last 2 or 3  Bank Statements
    • Copy of Investment Account Statements
    • Copy of Listing Agreement
    • Estimated net sheet
    • Identification of liens on property
    •  Letter of Lender Authorization: for all loans
  • Our team will guide you through all of the requirements regardless of which bank and which form are required

• What should we do with the letters and information we receive from the bank?

                          Read, review, and get a copy of them to your agent right away  DO NOT IGNORE THESE LETTERS. These letters contain different pieces of information and it is critical to review all of them as they may have legal consequences to them. Banks can send you letters in regards to the following:

• Loan Modifications - They can modify your loan so that the payment is more affordable for you and your family.
• Loan forbearance - This is a temporary adjustment by the bank of the requirement to pay your mortgage. They can do this for reasons such as health, job, or family issues. The amount that you do not pay is generally added to your loan balance or spread out over multiple payments.

• Are all short sales the same?
  • No. It would be great if they were as it would be the process easier for everyone, both homeowners and agents.  Any team who has helped both buyers and sellers of short sale properties will tell you that not all short sales are created equal. Failure on short sales occurs because of a variety of things:
    • Uncooperative banks
    • Inadequate disclosure by the seller
    • Poorly prepared buyer
    • Banks delays
    • Poor communication by listing agent with bank
    • Poor package sent by listing agent to bank
    • Buyers back out
    • Seller fails to cooperate

How do I choose someone to represent me on a short sale?

• The team should have a loss mitigation specialist on their staff which we do employ.
• The representatives should be able to tell you up front if they can help you and what they are going to be doing for you
• The agent you select must have short sale experience.  Ask them how many short sale transactions they have actually closed.  If they cannot answer this question to your satisfaction, move on, as this process can be frustrating and confusing even with the help of a specialist.

Other posts I have written on Short Sales -

Short Sale Hardship

Many Reasons To Avoid Foreclosure

Who Is Eligible for a Short Sale

Are there any Credit Consequences to a Short Sale?

Your Monthly Payments and a Short Sale

Short Sales - How Long Does the Process Take?

Short Sale Terms to be Familiar With

What can a short sale do for you?

• Help preserve your credit standing
• Allow you to sell your home with no out of pocket expenses
• May help reduce tax liability
• Help to releive your financial and emotional stress
• Avoid potential foreclosure

If you are facing difficulties with your mortgage, you need to KNOW YOUR OPTIONS! Call The Mode & DurhaM Team today for a private no-obligation consultation at (916) 230-0371 or visit our website at www.SaveMySacramentoHome.com

Check out our short video on how we can help you.

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Lori Mode and Bruce Durham, Keller Williams Realty in Elk Grove, CA

               www.AllElkGroveHomes.com