Short Sale My Home

October 20, 2009 by  
Filed under Blog, Short Sale My Home

So you have decided that you want to short sale your property but you want to make sure you are going about this in the right way.  There are several factors to consider when short selling your home, so it is always best to speak to a short sale realtor who has the experience and knowledge to execute a short sale successfully.  Here are the steps to complete a short sale:

  1. You are going to call your lender directly and make sure you get in charge of the person who deals with short sales.  There is a strong chance that they will pass the phone around 3 or 4 times, until it gets back in the hands of the person you don’t need.  You want to get a hold of the person who will be making a decision, such as the negotiator or someone higher up like a supervisor.  Do your best to get someones telephone number or email address, who you can contact regularly.   Believe me when I say, this will save you hours upon hours of waiting on the phone!
  2. If you decide to work with a third part to negotiate the short sale on your behalf, the lenders are going to want to have a letter of authorization, which allows the third party to negotiate on your behalf. If you need to get them in contact with your lender right away, you can conference your lender and authorize it over the phone.  Eventually you are going to want to get the letter of authorization in, because it will be annoying authorizing it every time they want to negotiate the file.
  3. The next most important document will be the preliminary net sheet.  This is the document that will estimate how much your lender will be netting after the sale of the property.  The lender is going to want to make sure that the seller of the property is not pocketing any cash from the short sale.  This document is going to show where all funds in the transaction are going.

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4.  The hardship letter is a statement describing the difficulty that the homeowner is facing. This is where you want to create a case to the bank that you won’t be able to make payments moving forward.  You want to sound as convincing as possible.  At the same time you want to make sure to be honest.

5.  Next you are going to have to show the lender your income and assets. The lender is going to want to know the areas in which you have any money, such as stocks, real estate, savings, etc… Lenders want to see everything!!

6.  Your lender is going to need a copy of your banks statements.  A comparative market analysis is a key factor in the short sale process, because the lender is going to want to make sure that the offer that comes in on your property is close to the CMA.  The company you are working with should be able to pull up a strong CMA, giving you an idea of what you need to short sell the property for.

7.  The last component which makes a short sale come to fruition is a purchase and listing agreement. To make a short sale happen you need a listing agreement and a valid offer in on the property.  So please make sure to get this to the lender as soon as you get them in.

8.  Many times the lender will counter the offer and you will have to go back to your buyer and get them to increase the purchase price.  The lender might also ask to reduce commissions, these are the key factors that are involved with a short sale.

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