What about a Short Sale Package?
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors

Every investor who wants to do short sales as a from of real estate investing knows that one of the very first steps is ordering the Short Sale package direct from the lender. Don't forget, when there is more than one lender, you need to order the short sale package from both lenders.

Each lender has their own formats of how they want the package submitted for their review and ultimate approval. Yes, you will find similarities between various lenders - but you must understand and respect they are individual entities and want things done their way - if you want them to cooperate with you.

It is critical that your package be complete. You will find that time is not your ally and if they have to come back to you for additional information - or worse information that they specifically requested and you failed to provide, then you can consider that to be the kiss of death.

Remember, Time is of the essence!

A universal truth is that most lenders will want many of the same things in their short sale packages for homes in foreclosure that they are considering a short sale alternative to. Several of these items will almost always be:

• 2 to 3 months of pay stubs
  
  
• 2 to 3 months of bank statements
  
  
• A hardship letter from the homeowner (handwritten is always best)
  
  
• A signed purchase contract with as few contingencies as possible
  
  
• A HUD-1 - or a Net sheet showing the mortgage lender exactly what they should expect to receive

Then there are items you can add to beef up your offer and substantiate your offer so that the bank is more compelled to allow you to purchase this property for less than what is owned on it and even for less than a fair market value. You may consider including the following documents:

• 1 to 3 estimates by licensed contractors - if the home needs more than a coat of pain and a bag of grass seed.
  
  
• Lots of Photographs to Identify problems with the property
  
  
• A Market Analysis prepared by a REALTOR As to what the home is actually worth - including a minimum of 3 ACTIVE comps and 3 SOLD Comps
  
  
• Your Own BPO if it works for you
  
  
• If the local school district is below the 50^th percentile - then send a copy of a schools report
  
  
• You might find out about crimes in the neighborhood. If there has been a particularly gruesome murder or some other violent crime in the area, in the last year, find a newspaper clipping (web based is fine) detailing the event - include a Google Map to show how close to the subject it is
  
  
• Anything that you can document that will detract from the value - whether it is the home, the neighborhood or even the community at large.

If you follow these guidelines, and you submit actual factual information - you should not have a problem working out a fair deal for all of the parties concerned.

Wishing you nothing but the best,

God Bless,

John Occhi, Hemet CA REALTOR
Loss Mitigation Consultant <