Make it EASY for the Loss Mitigation Dept to go through your SHORT-SALE Package

By
Real Estate Agent with BaileyMeadows, Inc - Real Estate Services

As we all know and regardless which Lender/Banks, Loss Mitigation Departments are so overwhelmed with hundreds of short-sale request packages they receive on a daily basis. As I constantly speak with many negotiators in Loss Mitigation Departments for every short-sale listings I have. I have been jotting down a few notes to gather a generalized idea of what lenders typically look for and prefer when going through short-sale packages. 

The following are some information that many negotiators preference in revieweing short-sale packages which I have practiced myself and evidenced in a smooth process in getting a quick ashort-sale approval.

* As a cover page, create a table of contents (ex: This Cover Page pg 1-1, Financial Statement p.2-3, etc.)

* Number each page per table of contents

* Put the Name of the Seller(s) and Account Number on every page

* It is best to send everything that they ask for at one time vs sending bits and pieces of papers at a time which can become quite messy and delay the process.

* The following is what they generally look for:

  • Hardship Letter (detailed explanation of the reason the mortgage is deliquent such as illness, loss of wages/unemployement, etc)
  •  Financial Statement  (Usually provided by lenders, if not, a list of monthly income vs monthly expenses)
  • 2-3 months of most recent bank statements 
  • 2-3 most recent pay stubs
  • Listing Agreement
  • Purchase Agremeent
  • Estimated HUD/Net Sheet from a Title Company
  • 3rd Party Authorization Letter 

Feel free to email me Homes@BaileyMeadows.com or call me (510)376-4060 for any questions and/or concerns about this.                    

Comments (2)

Brian Kreick
Willinger Real Estate - Wenatchee, WA
Good list of things to include.  I don't have much experience in short sales, but this list will help when I do.
Mar 27, 2008 06:16 AM
Shiela Meadows-Bailey
BaileyMeadows, Inc - Real Estate Services - Mountain House, CA

Brian,

I think many agents don't have much experience in short-sales and so majority of us are in the same field. These are just some helpful information based on my experience that I have found to be very effective and time-effecient in short-sale transactions.

Mar 27, 2008 07:02 AM