Short Sale Specialist Montgomery County MD
As a Short Sale Specialist in Montgomery County MD, the questions below will help me determine whether or not you could qualify for a Short Sale.
Short Sale Questions and Information
What is the address of the property?
What is the approximate value?
What bank is involved in the first trust mortgage? How much do you owe?
Is your loan FHA, VA, or Conventional?
Is there a second trust? Who is the bank and what is the balance?
Are you current in your payments?
Do you have other assets? Cash, stocks, property, etc.
Do you have a hardship? See below examples.
I.e. Unemployment / reduced income, Divorce, Medical emergency, Job transfer out of town
The Basic Process
The seller will need to prepare a financial package for submission to the short sale bank. Each bank has its own guidelines but the basic procedure is similar from bank to bank. The seller's short sale package will most likely consist of:
· Letter of authorization, which lets your agent speak to the bank.
· HUD-1 or preliminary net sheet
· Completed financial statement
· Seller's hardship letter
· 2 years of tax returns
· 2 years of W-2s
· Recent payroll stubs
· Last 2 months of bank statements
· Comparative market analysis or list of recent comparable sales
After the seller accepts an offer, the listing agent will send the following items to the bank:
· Listing agreement
· Purchase offer
· Buyer pre-approval and EMD check
· Seller short sale package
If the package is incomplete, the short sale process will be delayed. In this event, the bank might even shred the package.
Buyers may wait a very long time to get a response from the bank. It is imperative for the listing agent to regularly call the bank and keep careful notes of the short sale process. Buyers may get so tired of waiting for short sale approval they may feel the need to threaten to cancel if they don't get an answer within a specified time period.
That type of attitude is self-defeating and will not speed up the short sale process. If buyers are the type with little patience, perhaps a short sale is not for them.
Following is a typical short sale process at the bank:
· Bank acknowledges receipt of the file. This can take 10 days to a month.
· A negotiator is assigned. This can take 30 to 60 days.
· A Broker Price Opinion is ordered. The bank probably will refuse to share the results of the BPO.
· A second negotiator may be assigned. This can take another 30 days.
· The file is sent for review. This can take 2 weeks to 30 days.
· The bank may then request that all parties sign an Arms-Length Affidavit.
· The bank issues a short sale approval letter.
· The bank will not approve the short sale
The buyer cancels.
Sometimes we have to sell a short sales 3 or 4 times before a buyer sticks with the transaction. Buyers get angry and annoyed because the short sale process can be so lengthy that they sometimes cancel without telling anybody. Some short sales get approval in 6 to 8 weeks. Others take 90 to 120 days, on average.
As a Short Sale Specialist Montgomery County MD I have written several blogs on the subject. Click on the sentence above to read my other short sale blog
How is a Short Sale Seller's Credit Affected?
Fair Isaac released a report that says credit scores are affected about the same, whether a seller does a short sale or foreclosure. Fair Isaac says the average points lost on a FICO score are as follows:
· 30 days late: 40 to 110 points
· 90 days late: 70 to 135 points
· Foreclosure, short sale or deed-in-lieu: 85 to 160
· Bankruptcy: 130 to 240
Read all my blogs at www.rickknowsmontgomeryhomes.com
Call or email today for HELP. Short Sale Specialist Montgomery County MD