I’m planning on doing a short sale as an agent for a property, and am wondering what the exact steps are.
I’m planning on meeting with each of the homeowners this week (theyre a divorced couple) and get the autorization forms signed so that I can begin discussing the situation with the lender quickly and figure out what’s going on.
Any suggestions/tips as to the steps I need to take? Thanks
You pretty much need to put together a short sale package. The following listed documents will satisfy a lot of lenders package requirements.
Job Submission Cover Letter
□ Authorization to Release Information
□ Listing agreement (to be supplied by the Realtor)
□ Sale & Purchase contract
□ Buyers pre-approval letter
□ Sellers hardship letter: Complete explanation and documentation to support hardship such as unemployment letter, Dr. note/report, medical records, etc.
□ Personal Financial Worksheet
□ 2 Months bank statements (Checking, Savings, Mutual Funds, etc…)
□ 2 Most recent pay stubs (1 month total) for both borrower and any co-borrowers
□ 2 Year tax returns complete with Schedules and W-2’s. If self-employed please include a current profit and loss statement.
□ Copy of Drivers License (Clear Copy)
□ Copy of recent mortgage statements (first loan, second loan, etc.)
□ 3 recently sold & 3 currently active comps or an appraisal or a BPO Report
□ 2 Repair estimates or a Home inspection report
There was a foreclosure pending sometime last year, but it got blocked because the ex-husband filed a chapter 13 bankruptcy. How will this affect the process? I’ve heard that this might freeze the process and I have to get approval from the attorney.
Would it still be good to get the authorization forms so that I can actually contact the lender and discuss the situation?
Depending on the status of the bankruptcy the lenders might not be able to speak with you. What you need to do is ask the bankrutpcy attorney if the lender ever got a “relief of stay” done on the property. If it has been done then sure get the third party authorization and try the short sale.