I'm still not sure how you get paid on a SS???

First off I would like to saw this is an awsome site…people on this site are very knowledgable…I’ve been reading for weeks now. My question is…I would like someone to explain or direct me to some text…on how you are paid on a SS deal…I’ve seen the question asked and some answers given but it did’nt make sense to me…I live here in Atlanta Ga…and would like to start negoiating SS…but I haven’t seen the whole process…Is there a flow chart w/steps???
Please help…thanks

Use this for starters!!!

Basic Contents of a Short Sale Package

The following is a basic outline of what you want to include in a successful short sale package:

Cover Letter
Authorization to Release Information
Sellers Hardship Letter
Sellers Financial information most banks have a form for this however I use a standard form initially with all sellers (an example can be found here)
Supporting Financial Information:
2 years w2s
2 months pay stubs
2 months bank statements
Supporting Hardship info for example HOA liens, medical statements, disability statements
Repair Estimate for the property if you can develop a relationship with a contractor for this it adds credibility
Comps for the property
Net Sheet
Additional information that may be asked for:
The first mortgage holder may ask for a payoff amount from the 2nd
The second mortgage holder may ask for a payoff amount from the 1st
Initial Title Report I have had one bank ask for this

Cover Letter
The cover letter should be clear and concise giving the needed information to the bank. The information that I include is an overview of the homeowners situation, what they owe on the property, what it is really worth and mention the amount of the needed repairs. I also state what my offer to the bank is. I conclude my cover letter with all of my contact information and state that I hope we can work together to resolve this issue for the homeowner.

Authorization to Release Information
I have a standard Authorization form that I use and in most cases this works fine. There are a few banks that require their own form for this. GMAC will require that you use their form and it must be signed and notarized and the original must be sent back in.

Sellers Hardship Letter
I typically ask my sellers to make this at least a page long. The goal if this letter is to simply have the homeowner explain their situation to the bank. This will include key items such as job loss, medical issues, divorce, health issues, etc. If the seller is considering bankruptcy you can have them include that, however it typically doesnt scare the bank into acting faster.

Sellers Financial Information
The bank really wants to know what is the inflow and outflow that the seller has each month and what other expenses and assets do they have. I have two standard forms that I have my sellers fill out, personal information and financial information.

In most cases these forms will work, however there are times that the bank will request that the homeowner complete the standard forms that they issue.

Supporting Financial Information
These items are typically the same required by a borrower when applying for a loan:
2 years w2s
2 months pay stubs
o 2 months bank statements

I always tell my sellers that in order for the bank to evaluate considering taking less than what is owed on their property they need provide the same type of information they did when they applied for a loan, however they are now showing they cant do this financially at this time.

Supporting Hardship Info
In order to paint the full picture to the bank of the homeowners situation it can help to provide additional documents showing the hardship. This can include medical bills, accident reports, layoff notice, etc.

Repair Estimate For The Property
Providing the bank with a detailed repair estimate from a reputable contractor will assist greatly in getting your short sale accepted. The bank doesnt want to own property and especially not property that needs a complete overhaul. Showing this by presenting what needs to be done and the cost is very helpful.

Comps For The Property
You definitely want to do your homework and provide the bank with at least 3 to 5 comps of properties in the area that have sold in the last 12 months, preferably the last 6 months. In doing this you want to try to get as close to the subject property that you can and ensure that you provide the lowest comps that you can. I have found that it is also helpful to be able to show the number of days on market and any and all down payment assistance or seller concessions given in the sale.

As an investor most of the time when working a short sale your goal is to purchase that property in some form. This could be a purchase for your personal portfolio, a fix-n-flip or even a double closing. In order to do this you will need a contract.

I have found that a generic contract 1-3 pages works great. I always include my company name/ and/or assigns as the buyer and I also always include the following clauses:

o Buyer Shall be entitled access to the property to show partners, lenders, inspectors, contractors and other interested parties prior to closing
o Buyer is purchasing AS IS
o Contingent on the mortgage holder(s) accepting a short sale
o Contingent on a clean title search being performed for liens and/or other judgments against property

Providing a contract shows the bank that you are serious and want to purchase the property.

Net Sheet
Banks want to see how much money they are going to net with your offer. Providing a Net Sheet with your offer will provide the bank with the numbers they need to see what will we get. I have found a great tool that I use for generating a preliminary net sheet to submit with my offers this tool is EasyHud it is a membership site that allows you to generate all of the net sheets or hud1s that you need.

Additional Information
Typically if a bank requires additional information they will let you know what it is. The most common that I have seen so far is the request for the payoff amounts from the other lien or mortgage holders on the property.

If you are working with a homeowner with an FHA or a VA loan then you will have to include additional forms with your short sale package.

thanks…that answers the flow chart part of my question , this will be very useful information…now if all of this goes well and I find a buyer…how do I or anyone that completes this process gets paid…Thanks

I’m in florida so it may be different where you are at… We find a RE attorney and have him do a double close. We also did one where the title company charged an assignment fee on the “buyers” side of the HUD, ss bank either didn’t notice or didn’t care. Title company said the mortgage company is really only looking at the seller side- making sure the home owner doesn’t get any money. They don’t seem to care what the buyer’s closing costs are.

thanks for your reply…does any one know how this works in the state of georgia…is this possible…thanks