Steps To A Short Sale
· Provide the proper documents necessary to move forward with a short sale of your property, including a Letter of Authorization, allowing our short sale team to speak to your lender on your behalf. The other documents are very similar to what you provided when you obtained the mortgage on your property.
- Hardship Letter (explaining the reason for not being able to keep the property and specifically requesting a short sale of the property)
- Financial Worksheet itemizing your income and expenses
- 2 years of tax returns (all schedules of returns, if self-employed)
- Most recent pay stubs ( from the past 30 days) or P&L statement, if self-employed
- Most recent bank statements (from the past 60 days)
- Copy of mortgage statement for all mortgages/liens
Please note: All lenders have varying requirements and may demand that a borrower submit a wide array of documentation
- Place your property on the market with Kristin Calendine for fair market value and allow showings on your property to obtain an offer/offers that will be reviewed by your lender.
- · Expect to wait an average of 3-5 months for your short sale to complete, depending on how many liens are on the property, and other varying factors. During all of this time, your lender will be ordering an independent appraisal and/or Broker Price Opinion on your property to determine what the current fair market value is. This is a very important part of the short sale process that helps the lender determine what they will accept as payment in full for your mortgage. If there are two or more lenders involved, or a Mortgage Insurance company (MI), then our short sale team will facilitate the negotiations between them, always striving for a fully approved sale on your behalf.
- · If the lender considers you to have sufficient income or savings, they may ask you for a cash contribution or promissory note, usually at favorable terms, to mitigate some of the loss.
- · During this entire process, it is completely acceptable to remain in your property. In fact, most lenders would rather the home be owner occupied, instead of sitting vacant. Keep in mind that occupancy is always at closing. Of course, we will keep you in the loop during the entire process so that you are aware of when closing will occur.
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