Posted by: Catherine | November 10, 2007

Short Sale Checklist

If you’re interested in working with your bank to accept a short sale, there are many documents you’ll need to gather.  Most banks have a loss mitigation department who’s job it is to resolve problems associated with a defaulted loan.  Most often you’ll be working with a loss mitigation officer charged to help the bank minimize the loss due to a loan in default.  Though each bank has its own guidelines, many banks will not consider a short sale until you actually are late on your loan, and have received an offer on your property. Its vital to have the short sale package of required documents ready so that you can work thru the process quickly.  Most buyers do not want to wait weeks or months to navigate a short sale, so to facilitate a successful sale, get your paperwork in order.  Most commonly, the following items are 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

At times a lender or loss mitigation department may request additional information and documentation in order to verify the change in the borrowers financial situation and hardship.  Important to note that some of the requested documention may lead to re-verification of your financial status at the time of your loan origination.  And remember, even though you do everything your lender asks, provide all the documentation and obtain an offer, it is still solely 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, more than ever, it’s vital to have the right real estate professional on your side.

Coming soon . . .

Alternatives to foreclosure (refinancing, deed in lieu, bankruptcy, etc.)
How your REALTOR will work with your bank
Anatomy of a proper hardship letter, what do you write?

Ramifications of short sales and foreclosures (tax and legal considerations)
Property Marketing for a short sale
Short Sale Processing

What happens in a foreclosure
. . . and much more.

Your Contra Costa and Bay Area Short Sale Resource.  Call today for a confidential consultation and frank discussion of your options to avoid foreclosure.

Catherine Myers, REALTOR
Alain Pinel Realtors, Walnut Creek, CA

Alain Pinel Realtors, Walnut Creek, CA

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