Babylon NY Short Sale Homes Analysis For 2008 Through 9/30/10

Babylon NY Short Sale Homes Analysis For 2008 Through 9/30/10

Steps For A Short Sale

First, you need to find a real estage agent that really knows the short sale process. It's a delicate process and there is a lot of paperwork and financial documents that are needed that your bank will want before approving a short sale.

Documents Needed

1. Hardship Letter - Your bank will want to know why you have fallen behind in your mortgage payments. Loss of job, divorce, death of a spouse or significant other, sickness. Banks understand these situations. Banks will not understand dishonesty so just be honest from the start.
2. Proof of Income - Most banks require at least 2 months of paystubs and 2 years of tax returns. Statements from all assets including checking accounts, savings accounts, money market accounts, stocks and bonds. You get the picture. Disclose all including explanations of large deposits and withdrawals. Your bank will ask!
   
3. Comparable Market Analysis - Your real estate agent will do this. It's best to have sold comparisons for the last six months. Right now, we are in a declining market and those comps will show that. Also, having current listings and under contract homes in this analysis is needed. 
4. Letter of Authorization - Your real estate agent must be able to communicate with your bank. Authorizing them to do so will make the short sale process easier (hopefully). You must include the property address, loan #, your social security # (some cases, not all), your name, the date and your agent's name and contact information.

Documents Need When You Have A Buyer

1. Purchase Agreement, Listing Agreement and if the buyer is all cash, then that buyer has to submit proof of funds. If the buyer is taking a mortgage then they have to submit a pre-approval letter. Your real estate agent will let the buyer's agent know all this. Your bank will also want the Buyer's name and contact information. I have a short sale buyer now on a listing and the bank wanted the first 5 digits of their social security #. 
2. Please note that just because you accepted the buyer's offer, doesn't mean your bank will. They will negotiate just like you would have under normal circumstances. Hopefully, the buyer won't run away from that.

If all goes well, and it should, the bank will approve the short sale and then go to closing. In between this time, your bank may want more information from your and/or the buyer. Whatever the bank wants, give it to them ASAP. Any delays could result in the short sale being help up for going to closing.

And, it's a really, really, really good idea to hire a real estate attorney that knows short sales!

If you are looking to sell your Babylon NY home and want a Free Competitive Market Analysis, please call me today (631) 703-0201 to schedule a no-obligation appointment.