What short sale paperwork will my Georgia lender require?

By
Real Estate Agent with Solid Source Realty GA 320764

Georgia short sale FAQ:

 

A short sale is often the best solution for underwater homeowners who need to sell. The single biggest hassle for most Georgia short sellers is the provision of required paperwork to the lender.

 

I always remind my clients that, just like getting a mortgage loan in the first place required the submission of applications and documentation, the same will apply when they request that their lender let them out of those loans with a short sale.

 

Ultimately, more short sales are slowed or even derailed by the sellers themselves. How? It happens when they fail to return the documentation as requested by their lender's negotiator.

 

Short sale doesn't mean you can take short cuts.

 

Borrowers seeking to modify their mortgage loans or get a short sale approved need to be diligent in providing the exact documentation that is requested by their lenders.

 

The problem is that borrowers do not always keep such documents on hand as paystubs, tax returns, W2's, and bank statements.  I advise my clients to begin collecting these items in a special file (folder, envelope, even a shoe box will do) as soon as they know they want to short sell. That way, the paperwork is readily at hand when the lender asks for it.

 

Submit short sale paperwork in a timely manner.

 

One sure-fire way to slow down your short sale approval is to ignore lender requests for documentation. Don't sabotage your own success. You must document your hardship with appropriate proofs. Be prepared to give your lender the papers and proofs they request.

 

Some documents that need to go into your short sale file are:

  • Bankruptcy Papers.

  • Divorce Decrees

  • Records of Child Support Payments

  • Retirement Award Letters

  • Yearly Social Security Statements

  • 401K Statements

  • Most recent 3 months of statements for all bank accounts

  • Most recent copies of all regularly recurring bills

  • And more

     

Submit a complete Budget.

 

Most lenders will require that all borrowers submit a completed, signed and dated financial worksheet. This worksheet will include information on all income coming into the home. It also includes all expenses, which includes the following:

  • Car payment

  • Electricity

  • Current house payment

  • Car gas expenditures

  • Cable

  • Grocery bills

  • Toiletry expenses

  • Car insurance

  • Health insurance

  • Doctor bills

  • Telephone bills

  • Garbage bills

  • Gas bills

  • Any other recurring expenses that are required

Submit complete documents

 

Another problem can occur when homeowners submit incomplete paperwork. When the short sale processor asks for all pages of a particular document, they mean ALL pages. Even the blank pages of, say, your most recent bank statement need to be submitted. If the last page a processor receives is labeled page 5 of 6, she perceives that you have submitted an incomplete document. She doesn’t doesn’t know that the page 6 is blank unless you submit it.

 

Every short seller should be made aware of the importance of submitting their paperwork correctly.

 

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Take action and make an appointment with us today and get yourself started on the path to financial recovery. Our team has specialized training to help Georgia homeowners avoid foreclosure with a short sale. Please contact us today for a no cost confidential consultation.

 

 

 

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Topic:
Home Selling
Location:
Georgia Clayton County
Groups:
Short Sales Pre Foreclosures Bankruptcy and More!
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Tags:
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Jeff Dowler, CRS
eXp Realty of California - Carlsbad, CA
The Southern California Relocation Dude

Hi Elva

This is such important information for those home sellers who have to go through a short sale. In some ways it's even worse than the documentation needed when applying for a mortgage.

Have a wonderful weekend!

Jeff

Jun 24, 2017 03:21 PM #1
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Hi Elva!  I haven't listed a short sale in quite some time and would definitely need a refresher course, I'm sure!  I did a ton of them during the recession and do remember that the paperwork didn't get processed until each and everything on your list was submitted. 

Have a fantastic weekend, Elva!

Jun 25, 2017 07:49 AM #2
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Elva Branson-Lee

CDPE - Atlanta Real Estate & Short Sale Agent
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