Short Sale Package Checklist

Unfortunately the time has come. The bank refuses to modify your loan and your forced to try to short sell your home before it is foreclosed on. Here is a checklist of items most banks will want in the initial package;


Homeowner should provide the following:

1. Authorization Letter - gives your Realtor permission to represent you and talk about your account
2. Hardship Letter - Explain exactly why you can no longer afford to pay your Mortgage. State clearly your hardship. It doesn't need to be super long, just a paragraph or two is okay.
3. Tax Returns - Last 2 Years
4. Last 3 Bank Statements - all pages
5. Last 4 Paystubs - If you have been working, or are on Unemployment
6. Monthly Expense Sheet - Detail Expenses and Bills
7. Proof of Assets - Savings, IRA,  Life Insurance, Stocks Bonds, Trust Funds, Home equity Lines, etc...
8. Pictures & Estimates of Repairs
9. Copies of any Liens or Litigation
10. Credit Report - If it shows negatively that your no longer paying other bills, homes, etc...

Your agent will work on gathering the following:

1. From the Buyer: 
   
   • Purchase Offer, 
   • Earnest Money Deposit Check Copy, 
   • Proof of funds, 
   • Pre Approval Letter from buyers lender
2. Estimated HUD-1  - from Attorney/Escrow
3. Comparable Sales/CMA
4. Listing Agreement

Submitting all of the items at one time is recommend. Be prepared to fax the information multiple times to multiple fax numbers from the lender. It is very common for the lender to be "unable to find" your short sale package or request.


Agent Tip: Keep a log of the fax number, time & date of each fax sent. Many lenders have digital fax logs and can "Magically" find your fax when you ask them to check their log. Give them the number, time and date of the fax.

HOPE THIS HELPS..... GOOD LUCK ON YOUR SHORT SALE :)

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO REALTOR

Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com

Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate

7061 Clairemont Mesa Blvd. Suite 218 

San Diego Ca 92111 Lic. #01742839

Banks Seek Payback from Walkaways

Increasingly aggressive mortgage lenders are seeking to collect deficiencies from former home owners who walked away from their properties or sold them in short sales.

Many states, including Florida, give mortgage holders as long as five years to seek a deficiency judgment. If granted, the bank gets up to 20 years to collect and the option to renew for another 20 years if the debt isn’t paid.

About one-third of U.S. states, including California and Arizona, prohibit collection efforts after foreclosure, but home owners usually waive that protection in a refinance.

Most states allow collection on unpaid home-equity loans.

Banks are most likely to try to collect from people who walk away from a property in which they are still making payments.

“The bank is going to pull your credit report, and if you’re current on your other bills they are going to come after you and potentially ruin you,” says Larry Tolchinsky, a Florida real estate attorney.

Source: C.A.R., Bloomberg, Kathleen M. Howley (01/28/2010)

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839

Banks Start to Embrace Short Sales

Even before the government put pressure on them to embrace short sales, more banks were starting to take their lumps, do the short-sale deals and move on.

Three years into the housing meltdown, short sales have tripled to 40,000 in the first six months of 2009, compared to the same time period a year ago, according to data from the Office of Thrift Supervision and the Office of the Comptroller of the Currency.

Wells Fargo, Bank of America Corp., and JPMorgan Chase & Co. this year have hired and trained more staff to handle short sales and also developed software for expediting them.

“It’s really finally dawning on banks that they’re better off with a short sale,” said Richard Green, director of the Lusk Center for Real Estate at the University of Southern California in Los Angeles. “I think banks were in denial.”

Source: Bloomberg, John Gittelsohn and Margaret Collins (12/4/2009)

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.Barbarainc.com
Barbarainc@gmail.com

Coldwell Banker Nautilus Real Estate
7061 Clairemont Mesa Blvd. Suite 218
San Diego Ca 92111
Lic. #01742839