Short Sale Process by 2Upv1d


									                              Short Sale Process
                                      The Process

A basic series of events when processing a short sale:
1. Obtain requirements from the bank/servicer

2. Once you obtain offer you will submit all documents to the bank, we suggest a follow
up call in 48 hours to make sure they have received and assigned a processor to the file.

3. Once the bank has confirmed that they have received all the documents to move
forward the processor will order a BPO and file will be assigned a negotiator.

4. Offer is reviewed & compared to BPO, usually at this point you would receive a
counter from the bank

5. Pending the buyer wants to move forward you would send back an addendum signed
by all parties with a new updated HUD.

6. File goes for final approval and usually within 5 to 10 business days from there you
should receive an approval.

7. Once you have approval, file goes to closing at the title company. Be sure to
obtain final HUD approval 24 hours prior to closing

Before signing any short sale approval you may want to contact an Attorney or CPA
to advise you of the potential outcomes of the short sale
Behind on Your Mortgage?

If you get behind on your mortgage payments, have you contacted your loan servicer and
asked them if they’ll consider a short sale? If at all possible, you should try to avoid a
foreclosure which is a legal procedure.

If your loan servicer would agree to a short sale, following are some items your lender
may require you to provide them:

1. Last 2 years´ Federal Income Tax Returns

2. Last 2 months´ bank statements

3. Two most recent pay stubs

4. A completed Financial Statement which they will provide or I can get you a sample of

5. A very detailed hardship letter explaining why you’ve fallen behind in your payments

6. A completed and signed Authorization to Release Information Form which allows
someone (e.g., your REALTOR) to discuss your particular situation with your lender

There may be a tax liability created by a short sale or a foreclosure and the lender may
issue you a Federal Tax Form 1099 for the difference between what is owed and what the
sale of your home brings. I would suggest you talk to your tax advisor.

Since your lender is discounting the mortgage on a short sale, you’ll have to discuss with
them that you’d want their assurance that they will not sue you for a deficiency judgment.

A Short Sale Is Better For Lenders

Your lender/loan servicer would rather see you work out a solution than go through a
foreclosure process. They would lose far more money filing for foreclosure than they
would if they would agree to a short sale because there are legal fees and court costs.
They realize that bad things happen to good people and life’s circumstances change not
always for the better.

If your lender would agree to a short sale, they may wish to have either an appraisal or a
broker’s price opinion performed so they know the value of the property. Then, your
home would be priced where it will quickly sell.

The lender then releases the mortgage lien against the property and forgives the debt. As
a courtesy, and should there be any, they also try to negotiate the payoff of any other
liens against the property because if a property goes into foreclosure, any other lien
holders (except for property taxes) will not get paid!

As always, should you have questions about the legal and tax ramifications of a short sale
or a foreclosure, be sure to contact your attorney and/or your tax accountant.

Have Questions About Your Short Sale?

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