I plan on doing short sale with one of my clients. There loan amount is equal to its current market value. The house needs work and i believe a short sale will be possible. I am really new to the game and i am wondering what forms i need them to sign inorder to lock in my opportunity and process the short sale.
I am aware that i should do a warrantee deed and get it notarize but not to record it unless the short sale becomes successful. I was told that i should transfer the deed into a trust, what are the benefits of doing so? How do u go upon foruming a trust? Would it be easy for me to assign a trust once the short sale is accomplished?
What are other forms do i need them to sign? What will i need from the client inorder to get the short sale started? A copy of their mortage payment stub? Anything else? BTW they are already behide on 1 payment. All help will be most appreciated… Thank you in advance!
Not entirely true. Some lenders will short but you will need the homeowners (HO) working with you. The HO must call into default resolution dept or what ever that lender calls it and tell them that for whatever the reason is they will not be able to continue to pay for this house. The HO should be prepared to disclose any verbal info and documentation (asset/liability disclosure,hardship letter,bank statments, pay stubs, ect) supporting their claims. The lender must be convinced imminent default will occur.
Even with all of this some lenders still will not work with you until 3+ payments are missed. But I would say get the HO inline with you and start early. Make sure that the HO knows that this can take months before/if you will be able to purchase.
HomeOwners (HO) are behind on 1 payment since december which they still have not made current. On top of that, they never paid their taxes for the last quarter. Their bank realized this and paid for the taxes. So in their mortgage payment stubs, it says they are behide for the taxes and the december payment. Is it suitable for a short sale?