Short Sale Checklist – Information Gathering

Compile the following information to create a short sale proposal packet.
Homeowner: Keep all originals for your files.  You may come to my office to make copies otherwise please compile all necessary info and mail me copies.  Use this guide as your checklist.  Remember, time is of the essence. 

Financial Information

     Three most recent bank statements for all checking accounts for all borrowers
     Three most recent bank statements for all savings accounts for all borrowers
     W2s from the past two years for all borrowers
     Income tax returns from the past two years for all borrowers
     Past three paycheck stubs for all borrowers
     Copies of all bills for all borrowers from the past two months. Will be used to compile a financial worksheet. 

Include all that apply to your situation:

Examples:               
Automobile loans
Alimony/child support
Child care bills
All credit card bills
Electricity bills
Gas bills
Water/Sewage bills
Home telephone bills
Cell phone bills
Cable bills
Automobile insurance
Health insurance
Life insurance
Doctor bills
Dentist bills
Pharmaceutical drug bills
Food/Groceries
School lunches
Gasoline (auto)
Student loans
Other loans
Other bills

Hardship Information 2 Parts

     #1.  Hardship letter that describes succinctly yet persuasively why the homeowner was unable to meet his or her loan payments. The homeowner must HAND WRITE the hardship letter.

Hardship Example Letter:
Date

    To whom it may concern,

Because of my hard financial situation I am not in position to make the mortgage payments.

During recent months, I have (note ALL the hardships) which has put me in a position to not be able to make these payments on the loan.

The property is need of repairs and maintenance, which I can not afford.

I ask that you accept the proposed payoff so you can rid me of this problem and settle my debt with you. Please work with my buyers, they have offered me more than anyone else and I am desperate. Your help and consideration in this matter is greatly appreciated.

Sincerely,
XXXXXXXXXX

P.S. An attorney and some friends have advised me to file bankruptcy, but I am trying to avoid it.

     #2.  Documentation of hardship. Documentation may include:

Hospital bills
Doctor bills
Home repair bills
Documentation of unemployment
Documentation of incarceration
Death certificate
Divorce decree
Other documentation

Property Information

     Information about any additional liens on the home. Property Tax Liens, Homeowner’s association Liens, Republic trash liens, workman’s liens, etc.

Obtain recent credit report.

Owner search would reveal whether there are any additional liens.
     Recent Comparative Market Analysis (CMA)
     Estimated HUD-1
     Estimates for any necessary repairs to the home.
     Most recent property tax bill and proof of payment status
     Proof of homeowner’s insurance coverage

Lender Information

     Monthly statements from the first and second lenders
     Name of supervisor in Loss Mitigation department
     Direct phone number for Loss Mitigation department
     Short sale application from the lender
     “Authorization to Release Information” form signed &  NOTARIZED from the homeowner for the Realtor to speak on his or her behalf to lien holders. Have separate one for each lien holder. Form attached, can have it notarized in my office or any bank.

Other

     If homeowner filed for bankruptcy, name and number of bankruptcy attorney
     If homeowner is in a law suit, name and number of attorneys

Disclose any other necessary information to help me assist you on getting this property off of your hands.

        Seller: Keep all originals of documents supplied.  Copies should be made and submitted to your real estate professional.  If you need advise or help regarding this process in your local market please contact me.  I deal assist sellers nationwide.

Christin Griffin, ChristinGriffin@hotmail.com, 702-353-5161