Thread: Short Sale

The short sale offer needs to be submitted just the way the bank wants or they won't even look at it.

1) Best to have your client contact the bank and find out exactly what they want.

2) Make sure the buyer really knows how to work a short sale or you are wasting valuable time.

Generally the main considerations for a short sale/ items needed:

a) Appraisal/ broker opinion of value

b) Copy of sellers current income & asset info showing they cannot afford to make the payments

c) Explanation letter from seller explaning the change in situation - why they can no longer pay.

d) Inspection report showing items needing repair & costs

e) Net Sheet showing exactly what the bank will net at closing

f) Authorization form for buyer to deal directly with lender

This can be lucrative for buyers but complex - I would only deal with buyers who have experience doing this.

Be prepared to make alot of phone calls to the mortgage company. Try and be as friendly as you can to the rep you deal with. He/She has alot of sway as far as what can be done.

Cut all the options above by assigning the contract...
It may be easier, faster and you stay out of the problems.
My 2 cents though...

If you need to short sale, it's actually better that you contact the bank instead of the homeowner. Banks see 3rd parties with better eyes than they do the homeowner. After all, that's who is owing them money and not wanting to pay!

Banks will assume you have more experience (regardless of whether or not that's true) and that you can handle communication better.

I suggest you call up the bank and ask what their short sale package is. They'll give you the documentation you need to gather from the homeowner.
The bank's phone nr is in the monthly mortgage statement. You'll need that and the loan nr to start with.

Be prepared to spend quite a bit of time on the phone!

Hope this helps.

Before you try and talk to the bank, get a letter from the owner giving you permission to discuss the loan/property/shortsale with the bank. Most banks won't talk to you any more without it due to privacy laws/concerns.

-Tim