Yesterday we spoke about dealing with short sales and smaller lenders and we have one other tip that we would like to throw in. Get up early to make your call to the small banks. The earlier you can get a phone call to the bank, the better you will be.
Today, we would like to talk about something that we discovered today, but have been noticing over the last few months. We talk a lot about financials in our short sale class. We haven't spent much time on it with our video blog, but in our classes we talk about the documentation that is needed from the homeowner and the documentation that the bank needs. We are all familiar with the hardship letter and the financial analysis form and the bank statments and the pay stubs.
There has been a trend recently, many with files at BofA might recognize this. Lots of the investors are not even asking for documentation. In fact, we aren't even uploading all of the sellers documents until a file gets assigned to someone and they request it. Then we find out what documentation the bank will need. We have had some situations where the bank only asks for a hardship letter.
At times, we have seen situations where the bank looks at the credit score and determines that they don't need any documents at all. Apparently, Fannie Mae is testing a program where, if the FICO is low enough, they will not request financial documentation. Basically, if the homeowner isn't paying any bills, they don't need the documentation.
We are excited to see what the factors are that could potentially make some of these negotiations easier. Because lots of smaller lenders follow what Fannie Mae does, we could see a shift across the entire short sale world.
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