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Preparing for a Short Sale

By
Real Estate Agent with Coldwell Banker Realty MD RE License 579412

When requesting to your lender to accept a short sale on your home, there are 3 categories of items that you will likely need to get put together. Financial information, hardship information and property information.

Lets start with what you will need on the financial list

Financial Information

  • Three most recent bank statements for all checking and savings accounts for all borrowers
  • W2s for the past 2 years for all borrowers
  • Income tax returns from the past 2 years for all borrowers 
  • Past three paycheck stubs for all borrowers
  • And copies of all bills within the past 2 months from all borrowers.  These will be used to put together a financial worksheet.  These could include; car loans, alimony/child support, child care bills, credit card bills, utility bills, phone and cell phone bills, cable, insurance, medical bills, food/groceries, gas, student loans etc.

Hardship Information

  • Hardship letter that describes exactly why the homeowners were unable to make their payments.  The homeowner must write the hardship letter.
  • Documentation that proves the hardship, which could include hospital bills, medical bills, home repair bills, unemployment, incarceration, death certificate, divorce decree etc.

Property Information

  • Information about any other liens on home if any.  The homeowner might have this information, ask them if they have a recent credit report. 
  • A recent Comparative Market Analysis
  • Estimated HUD-1 
  • Estimates for necessary repairs for the home
  • Most recent property tax bill and proof of payment status
  • Proof of homeowners insurance coverage

Lender Information

  • Monthly statements from the first and second mortgage holder
  • Name of supervisor in Loss Mitigation Department with direct phone number
  • Short sale application from the mortgagor
  • Written authorization from the homeowner for the Realtor to speak to the mortgage company on their behalf. 

Other Important Stuff

  • If the homeowner has filed for bankruptcy, you'll also need the name and number of the attorney and permission to speak to them
  • And, if the homeowner is involved in a law suit, you will also need the name and number for the attorney and permission to speak to them
  • You will also need lots of patience and understanding

Short sales take a long time to process but if you have all the information you need before you get started it really helps to shorten the processing time.  Remember that homeowners did not get in this situation over night and it will take just as long or longer to help them through the process.  You need patience and understanding to help deal with homeowners that are on an emotional roller coaster and quite often embarrassed about their financial situation.

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Creating generational wealth, one home at a time. If you are thinking of buying a home,  did you know I can help you find a home for as little as $1000 of your own money?  Thinking about selling a home in  Maryland give me a call at 410-292-0100 or start your search here and I'll talk about the market conditions and what your home could be worth in today's marketplace if you are thinking of selling.  If you are considering buying a home, there is no better time than now to buy. The tax savings and wealth building alone are worth the plunge into today's market. Coldwell Banker and I are connected with some of the world's brightest and best real estate agents and can assist with your move here to Maryland or anywhere in the United States or abroad.  Ask me how.

During these trying times, Coldwell Banker and I are equipped with the latest technology to sell your home using Virtual Open Houses, Virtual showings, electronic signing, virtual inspection, and even online closings.   You can contact me through Snapchat, Duo, Skype, Google Chat, WhatsApp, text messaging, or simply by phone.  We take your and your family's health and safety very seriously.  

June Piper-Brandon ~ Associate Broker ~ MRP, AHWD, CDPE, ePro

Coldwell Banker

410-292-0100 - Direct   410-461-7600 Office

June Piper Brandon - Agent with Century 21 New Millennium

June Piper Brandon - Agent with Century 21 New Millennium

Comments(2)

Rich Mielke
REMAX Results, Frederick MD - Frederick, MD
REALTOR, Frederick Maryland Real Estate

June, it is very important to get a preliminary HUD1 as soon as possible and forward it to the lender. That is the show me the money moment for them.

Oct 22, 2008 11:44 AM
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

All great information, but I'm not sure one can ever be prepared for all the interesting things that can occur with a short sale. It can become quite exhausting at times.

Nov 05, 2008 01:55 AM