Well now that you have worked your way through to an Asset manager or Loss Mitigation Manager at the Lender or Loan Servicer your paperwork has also now begun to increase greatly. Be certain that the Lender's representative has all of the documents you have sent them, and visa versa because the documentation is a key ingredient to the process. You should have already sent the lender;
1. CMA showing the current value of the property on the Open Market
2. A completed HUD from an Escrow / Title company showing the Net for a sale at the CMA value
3. The complete financials from the owner showing their need for the short sale.
4. The hardship letter explaining why the owner needs help from the bank. Be truthful not prideful. Make sure it is written by the owner and explains all of the details.
At this point the lender will most likely order a BPO from anothe ragent in the area to see how your CMA stacks up against another agents CMA. Remember be ready to explain interior damage or deferred maintenanc issues and other factors that helped you arrive at the CMA value
Working through and accepting a contract requires patience and lots of follow up. Do not just fax or e-mail over an offer and wait. These representatives may have as many as 50 case files on their desk on any given day.
As the process has moved forward the lender is rightfully going to expect you to "KNOW" about any liens or other Title issues that might arise at closing so you will be expected to work closely with an Escrow/Title agent to review the property for UCC filings, HELOC filings and Mechanics Liens. Also be certain that Property Taxes and HOA fees are paid to date so thos e dollar amounts will be nearly exact at closing. Please realize that these issues will cost YOU $$$ at closing, the bank will not give up money if you failed to properly investigate these issues.
If you know of someone in Middle Tennessee trying to avoid foreclosure please give them my information!
Paul Moye
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