Putting a Short Sale together - what’s with all the paperwork

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As I have mentioned in previous post about Short Sales, there are a few items that the seller will need to accumulate in order to submit a Short Sale Package to the bank. The topic about short sales have been on the tip of everyones tongues recently. In fact, most of the information has already been written, shown at seminars, posted on youtube and MySpace, but not everyone understands the process. And that is what I am trying to do for you…help you understand. Buyers and sellers feel like they are out there all alone. A knowledgeable agent can help both parties navigate through this turbulent transactions. Understanding what to expect and what is required help considerably in the short sale process.

 

Disclaimer; I am not a tax expert, CPA, financial planning expert, nor a lawyer. I suggest before you decide if a short sale is right for you, that you seek professional advice from your CPA, tax expert and lawyer. What I am giving you here is a peek into what could happen if this is the right choice for you.

 

One of the pioneers in the short sale markets is a fellow Real Estate Agent in Bonita Springs, FL, Chris Griffith. She writes often on her blog, Real Life in Bonita Springs and now writes weekly for the Naples Daily News. You can read her entire post about short sales here, but I will provide you with a few excellent excerpts from her article.

 

“Some buyers may not want to wait weeks or months to navigate a short sale, so to expedite a fast, successful sale, get your paperwork in order. Although your lender may have slightly different guidelines, the following items are commonly required: “

 

  • Listing contract
  • Sales contract
  • Hardship letter
  • 2 years W-2’s or tax returns
  • 2 months pay stubs
  • 2 months bank statements
  • Recent statements for 401k, retirement, investment accounts
  • Financial statement listing current liabilities, assets and income information
  • A letter of permission authorizing your real estate professional, your attorney and/or C.P.A. to speak to & negotiate with your lender on your behalf.

As she points out, each bank has it’s own criteria and set of rules, but for the most part require the same amount of patience and paperwork. And I will close with one of her statements that everyone has to remember…

 

Regardless of your situation, it is still the bank’s decision as to whether to accept the short sale terms. Some find that no matter what they do, foreclosure is inevitable. But that is why it is imparative to have an experienced real estate agent working on your behalf.

If you liked that post, then try these...

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March 12, 2008 · Filed Under Buyer, Frederick Foreclosure, Frederick Market Conditions, seller

Comments

3 Responses to “Putting a Short Sale together - what’s with all the paperwork”

  1. Chris Griffith on March 12th, 2008 1:22 pm

    It will be nice to reference on more pleasant subject matter in the future, won’t it?

    Chris Griffith’s last blog post..You Won’t See a Roadside “Sales are Up” Sign

  2. gotbob on March 12th, 2008 7:59 pm

    Yes, when buyers and sellers are getting what they want and not getting kicked to the curb for poor lending practices.

  3. High Brow, Low Brow - North Park | Redfin San Diego Sweet Digs on March 26th, 2008 3:03 pm

    [...] and I’ll throw in one or two in the middle so you get the big picture along the entire continuum. On Monday, I covered Hillcrest. Today, North [...]

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