2 short sale leads, seller doesn't want to provide tax returns...

Foreclosures, Short Sales, Tax Foreclosures
1

hey guys, as the title says. i have two leads for short sales, the problem is the seller doesn’t want to provide the tax returns for personal reasons.

the seller has declared BK so the tax returns were necessary. is there anyway around this with the bank or is this a dead end?

ps - yes i have submitted replacement docs saying the seller did not file tax returns, but this is not the case for this scenario

pss - the lenders are:
property 1 - Wachovia & Bank of America
property 2 - Asc (waiting on the 2nd)

2

Get the forms ready, give the seller a stamped addressed envelope so he can mail the tax forms directly to the bank himself, without giving them to you.

3

Actually just have the seller sign a 4506 and order them yourself…

http://www.theshortsalegal.com/4506_IRS.pdf

Good Luck

Michael

PS Most lenders are requiring this form anyway…

4

thanks for the replies guys. the issue is the homeowner (for personal reasons unknown to myself) doesn’t want to provide them. having that said, is there anyway around this?

5

Would the homeowner rather go into foreclosure? Or are they trying to hide something?

6

My bet is that they don’t have any because they never filed.

Didn’t pay their house payments, didn’t file their income taxes. Very possible.

7

my assumption is they are trying to hide something.

whether i’m correct or not…are you able to get short sales approved w/out providing these documents?

8

I would see if they are willing to submit them directly to the lender. Give them one of your fax header pages and have them fax them in. If they still do not, ask them to call the LM or setup rep and see if they can verify anything over the phone or if there is an alternative…
I only send the prior years 1040 form (2 pages) with my SS packages.

9

I doubt it, but I guess you could always ask the lender. I’d be surprised though, I mean logically it would be insane for a lender to accept a short sale without truly understanding the financial situation of the borrower.

10

I always tell a borrower that the same paperwork the lender needed to qualify you is the same that they will need to un-qualify you…

11

Speaking of… I read an article today about the HAMP applications in particular that said studies show 39% of the HAMP applications are missing data, signatures, etc.

I wouldn’t be surprised if the number for short sale apps was similar and then those same people who submit incomplete / half-assed paperwork are the ones complaining about how bad the bank is at handling their short sale.

Here’s my blog post about it. It was up on HousingWire.
http://www.shortsaleartisan.com/blog/2010/03/16/is-the-hafa-impact-on-short-sales-being-overblown/

-Nick