Short Sales and the Financial Packet

Real Estate Agent with Keller Williams Realty East Valley

One of the biggest challenges with homeowners and the selling their homes via short sales is the conversation we hvae to have about their financial packet. Why, they ask, do you or the bank need to see my bank statements, taxes and monthly expenses? To their defense, they are right to ask...I mean, they have - for the most part - just met me and are now being asked to turn their account information over to me, along with account numbers, birthdays and social security numbers - in a time where identity theft is paramount and all over the news.

My explanation to them is that what they used/needed/were required to give to the bank for the purchase of their home is not required for them to get out; despite all the changes made to the Short Sale world, these items have always remained the same and are required in almost every transaction:

Two Most Recent Pay Stubs

Two Months, most recent bank statements - the entire statement

Financial Statement

Hardship Letter

Bank specific paperwork - typically arms length tranactions

Copy of your most recent mortgage statement

Previous two year tax returns

Authorization for your Realtor to speak on your behalf.

This can be daunting information to hand over, just make sure you have a security measure in place to keep this information secure and explain to your clients what that is.

I do have a question for all you Realtors, when do you collect this information? At listing? When a contract comes in? 

Also, I've had experience where the Realtor wanted the $1,000 earnest deposit non-refundable for 90 days and have the buyer's do their 10-day inspection period when the contract is executed (and they can back out during the 10-day inspection period) but I'm curious what your thoughts were on these two items?

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Warm regards,

Heidi M Tourangeau

Cell: (480) 862-2597
Office: (480) 759-4300
Fax: (888) 900-1603

Keller Williams Realty Sonoran Living
4621 E Chandler Blvd., Ste 160
Phoenix, AZ 85048