"The Bank wants LOTS of information..." said the short sale Sellers

By
Real Estate Agent with EXP Realty 414-525-0563 57026-90 Broker

 We are seeing a resurgence in short sales in our market. Our initial meeting includes a very comprehensive folder of information for their reference and review.  This is a confusing and upsetting time and this mini-library provides them with some resources that answer the most popular questions and concerns.  We also of course, let them know that we can be reached seven days a week should they need assistance.file folder

   Part of this "orientation information" is a list of things that the Sellers' Lender  will require when they have accepted an offer. We give them an example of a hardship letter and list all the other financial documentation that is required as well as the format that needs to be used. (REAL bank statements not those generated  off the internet, a signed divorce decree or petition for divorce, etc.)

    documentsAfter we received an offer recently the Short Sale seller had not reviewed the list in a while and seeemed overcome by the number of documents required.  While we think that many lenders DO go to an extreme (having had to begin the paperwork again when one Seller died during the process to "sign" them all and write "Deceased" underneath,) the lender makes the rules.  They....or more likely their invest ...are forgiving a debt and want to be sure that the reasons are accurate. It is in the lender's best interest to forgive the documented debt caused by hardship and the Sellers' best interest to provide whatever information is requested in a timely manner.

    The lender reserves the right to close the file if the Sellers do not cooperate on a timely manner....and theyClosed risk foreclosure or beginning the file again.

    Short sale agents...prepare your sellers as much as possible for the paperwork that will be expected of them and the time frame that is needed.       Sellers....remember the lender is forgiving a debt and requires documentation to do so...Lenders....be reasonable...less than 24 hours with Sellers sometimes in different time zones is not realistic.

       If you or anyone you know is considering a short sale...call the Hansons....we will guide you thru the maze of documentation and assist you during this difficult time. 

Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Rainmaker
3,255,113
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Home and Condo Specialists

 This is the best advice Sally: "Short sale agents...prepare your sellers as much as possible for the paperwork that will be expected of them and the time frame that is needed"...Short sales are anything but short...

Feb 22, 2015 08:28 PM #1
Rainmaker
2,346,102
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Everyone needs to be reasonable about everything in order to wrap up a transaction like a short sale.

Feb 22, 2015 08:34 PM #2
Rainmaker
658,116
Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

Great advice for a grueling process...

Feb 22, 2015 08:35 PM #3
Rainmaker
3,281,509
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Sorry to hear that short sales are coming back in your area. They are a difficult process to handle and I've found that sellers often don't have a clue as to how complicated the process is. Anything we can do to streamline it and educate them helps move the process along.

Feb 22, 2015 08:41 PM #4
Rainmaker
2,295,489
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Sally. Am seeing the same thing, there are folks that want to get this process completed by the end of the year for tax purposes. Your clients are fortunate to be working with you guys.

Make it a great week!

Feb 22, 2015 09:14 PM #5
Rainmaker
3,746,218
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Sally and David. Short sales are a specialty and you need a kind and knowledgeable agent. You fit the bill.

Feb 22, 2015 09:21 PM #6
Rainmaker
3,244,401
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

It is a long process that is for sure.... I hope you had a wonderful weekend, and start this week off great too

Feb 22, 2015 10:48 PM #7
Ambassador
3,891,448
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally and David as in anything else in Lending these days, the accurately and timely the information is provided, the quicker the transaction is approved.  Having said that, Short Sales take so long to go through the approval process that it does seem like death will come before approval.

Feb 23, 2015 06:52 AM #8
Rainmaker
2,100,725
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

If I never see another short sale again, it would be fine with me; however, I heard they are coming back. As usual, you write professional content that is truthful and very informative. Thank you.

Feb 23, 2015 07:37 AM #9
Rainmaker
3,319,116
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

 We must be perverse Patricia Feager....it is what we do ...along with divorce and have come to think of both as "normal" !

Feb 23, 2015 07:52 AM #10
Rainmaker
3,041,287
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Most people as you indicated have a real problem with all the paperwork associated with a short sale.  The shock is upsetting but it has to be done.  

Feb 23, 2015 07:06 PM #11
Ambassador
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Sally and David- the most important thing you said was that agents need to prepare their sellers. 

Feb 28, 2015 12:42 AM #12
Rainmaker
3,319,116
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

  Yes Kathy Streib...we have a folder with tons of information...this is a confusing time and we want the Sellers to have something that they can refer to....and they know that they can call us anytime as well.

Feb 28, 2015 12:45 AM #13
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Rainmaker
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce
For All Things Wisconsin Real Estate...Call the Hansons
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