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How to Suceed With a Short Sale - Made Easy

By
Real Estate Agent with Real Estate Teams LLC

Your Distressed Property and Short Sale Expert in Maryland

 Why Does the Lien Holder Ask for Lots of Information for a Short Sale?

Sellers want to know why they have to submit tax returns, bank statements, and pay stubs in order to participate in a short sale transaction.

Important - remember that all short sales are subject to lender approval. The banks ARE NOT required to allow a seller to participate in a short sale - they are looking for provable(by seller) hardship

As part of the SHORT SALE package that banks require in order to review a borrower for a short sale, most lenders require pay stubs, bank statements, and tax returns, because the bank wants to confirm that there is a VERIFIABLE HARDSHIP, which puts the seller in a situation where she/he cannot afford the mortgage payments any longer.

Banks often also run the short sale seller's credit report, so the bank will know if the borrower is current on all other debts.

There are SHORT SALE SELLERS who state that they do not have a bank account. Don't try to mislead the bank. They will pull the seller's credit report, check the pay stubs, and review the tax return and bank statements, then the bank will know whether the short sale seller has a verifiable hardship that will qualify the seller to participate in a short sale transaction.

What is the best way to get a short sale approved? Cooperation. Submitting accurate documentation in a timely manner will assure that the short sale gets approved as quickly and efficiently as possible by the bank.

The goal is to prevent the seller from going into foreclosure, having less effect on the seller's credit report, and perserving security clearances, among others.

Contact me with any questions.

 Dennis

www.MarylandDistressedProperties.com

www.Frederick-MontgomeryCountyHomes.com

 

Comments (2)

Jay Schmitt
Keller Williams Keystone Realty - Gettysburg, PA
Gettysburg Real Estate Agent

Pretty good advice. There are a lot of misconceptions about short sales.

Dec 27, 2010 01:00 PM
Anonymous
Dennis Helmstetter

Not all banks are there yet, but it sure does save them money - or give then lower losses than a foreclosure.

just give them what they want.

Dec 27, 2010 11:38 PM
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