| One of the most important elements in a short sale | | | | 14. Authorization to Release Form : You need this |
| is putting together a complete short sale packet. | | | | initial document. If you do not get this signed you |
| Without it your file will not even be opened, let alone | | | | can't speak to the bank at all. |
| reviewed. Listed below are the documents you need | | | | 15. Homeowners Financial Worksheet: This should be |
| in order to gather the information to complete a | | | | very comprehensive. I have developed a 4 page |
| successful short sale packet. | | | | worksheet that lenders will appreciate. |
| The number one reason a short sale is delayed is due | | | | 16. Damage and Repair Photo Notes: If the property |
| to not providing all the information the lender | | | | needs repair this will influence the bank. You should |
| requests to process a short sale. The file will sit | | | | supply the repair estimate with pictures and general |
| abandoned until all the documents are received. This | | | | contractor estimates that the normal homeowner |
| is another reason why Loss Mitigation Departments | | | | would pay for these items...not necessarily our costs. |
| are responsible for handling 200 or more files a | | | | 17. Property History View |
| month. Borrowers submit incomplete packets and the | | | | 18. Estimated Carrying Cost |
| loss mitigation put their file at the bottom of the pile. | | | | 19. Market Statistics |
| To avoid this costly and sometimes fatal error, | | | | 20. Listing History |
| review the checklist below. It may be helpful next | | | | 21. Comps |
| time you are submitting your file to the lender. Some | | | | 22. Marketing Photo Notes |
| of the items below are for your records only, but | | | | 23. Price Change Log |
| necessary in obtaining all the information you need | | | | 24. Repairs and Property Damage Form |
| for your Short Sale Lender Packet. | | | | Checklists |
| Here are the 27 documents you need: | | | | 25. Homeowner's Document Checklist |
| Typical | | | | 26. BPO Appointment Checklist: You may have |
| 1. Bank Statement | | | | learned how critical it is that we influence the BPO. |
| 2. Bank Stubs | | | | The lender will hire an appraiser or a realtor to go to |
| 3. Listing Agreement | | | | the house and determine the value of that property. |
| 4. Tax Returns | | | | Make sure you are the contact person who meets |
| 5. Paycheck Stubs | | | | them at the house and lets them in. |
| 6. Buyers Approval Letter | | | | 27. HUDS: The HUD-1 Net Sheet shows how the |
| 7. Purchase and Sale Contract | | | | money is to be dispersed at closing. The lender looks |
| 8. Preliminary Closing Statement | | | | for recognizable and unacceptable red flags, such as: |
| Letters | | | | excessive commissions in this transaction, any cash |
| 9. Short Sale Disclosure | | | | going to seller etc. Make sure you understand how |
| 10. Escrow Letter | | | | the HUD is supposed to be prepared. |
| 11. Cover Letter: This is the introductory letter that | | | | Obviously short sales are more difficult than your |
| you send along with your package outlining the | | | | average buy/sell, but if agents want to maintain or |
| transaction to the lender. Each lender would receive | | | | grow a successful business, learning how to work a |
| their own proposal. | | | | short sale is vital. It's not going away anytime soon. |
| 12. Hardship Letter: The Hardship Letter should explain | | | | We still have another huge hurtle when the |
| how the seller got into financial trouble and must | | | | adjustable rate mortgages flex their muscle in the |
| convey the basic message that the seller can't make | | | | coming years. |
| payments AND does not foresee any way that they | | | | Remember that every short sale is different, and will |
| will ever again be able to make any payments. | | | | have different guidelines, but if you use this list as a |
| Disclosures | | | | guideline you should quickly, easily and accurately be |
| 13. Short Sale Disclosure | | | | able to complete a short sale packet, and have the |
| Forms | | | | lender review your file. |