Processing A Short Sale
- Send letter to Seller(s) in default (to get new clients)
- Meet with seller(s) - Take time to explain the short sale process to the seller(s)
- Gather information on the status of their default, letters received, mortgage papers, and other information
- Go over market value of property vs. equity in the property
- Get listing agreement signed, along with other forms needs: (CA: RLA for Short Sale Transactions)
- File out the Agents Visual Inspection Disclosure (California requirement)
- Get letter of authorization signed by seller(s) - this letter will need to include all the mortgage information such as loan #, correct name & social security number of seller(s), and you will need to get a phone number or fax number if they have it available
- Have the sellers fill out a statement of information so that you have an ideal of who you are dealing with (this is not a requirement, but title may ask you to send them this information and it is good to have it in your file) - this is a part of the seller's information package that you should have.
- Check with seller(s) to see if they can afford to get an appraisal (or BPO) and / or home inspection so that you have a better idea of the value of the property from a professional view.
- Call title and open a pre-sales escrow and request a Preliminary Report, as well as ordering the property binder for your open house showings and disclosures
- List property on MLS, online listing services, etc.
- Make that Initial Contact with Lenders - requesting payoff information, owner's assistance programs and short sale payoff requirements
- Keep direct Contact with Seller throughout the listing - weekly updates work well
- Set up open house (if OK with seller(s)
- Review of all offers & present immediately for seller(s) review - once accepted by both seller and buyer
- Communication with escrow and title - get escrow number, HUD
- Review of Escrow's Estimated Sellers Net - (from HUD)
- Preparation of complete Short Sale Package - Most lenders require the documents listed below :
- Negotiate with Lender as needed
- Review Short Sale Approval with seller(s)
- Oversee close of escrow
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Hardship Letter
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HUD
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Letter requesting Short Sale & delay of Trustee sales date
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Comps & pictures of property
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Signed Purchase Agreement
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Agent's Visual Disclosure
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W2 or latest tax forms
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Pay check stubs
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Bank statements (2 mo)
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Copy of appraisal, home inspection results if avail
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