Short Sale Checklist
In order to get approval for a short sale from your lender, you would need to compile a whole lot of documentation and submit it as an application package. Therefore, it is best to have a short sale checklist so that you do not miss out on anything, which can delay the approval process, and hence, the sale. |
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In order to opt for a short sale, it is not necessary that you have to miss out on mortgage payments. You can also opt for one if you are finding it difficult to meet your final commitments. However, you will have to prove this to the lender.
Make sure that you work only with a licensed real estate agent to find a buyer for a house. Usually lenders mandate this. It would be in your best interests to get a realtor who has prior experience in short sale. This way he will be able to advise you on how to go about the entire process.
In order to see whether the buyer is offering a fair market value for your house, get an appraisal done. This way you will know what price you should be getting from the buyer, and if you feel that the price is not good enough, you can reject the offer even before it goes to the lender. Also, you would have to submit this to the lender with the rest of the documents.
In case, the offer made by the potential buyer is good, make sure you get a purchase agreement done using the help of a real estate lawyer. This has to be submitted to the lender along with your application package.
Here is a short sale checklist that usually all lender want. However, it is possible that your lender could ask for additional documents besides the ones listed here.
- Hardship letter which should highlight why you are opting for a short sale. It could be for reasons like a divorce, relocation, losing your job, illness in the immediate family, or reduction in the income of the household. In case, you will no longer be able to make the monthly mortgage payments, make sure this fact is also mentioned in the letter.
- Copy of the latest mortgage statement for all mortgages that are there against the house.
- Authorization and consent letter authorizing your realtor to access information on your mortgage account and speak to the lender on your behalf.
- Copy of the last two years' tax returns along with W2 forms
- Copy of bank statements of all your accounts (savings and checking accounts) for the last two months.
- Copy of your pay stubs for the last two months
- A financial worksheet signed and dated which shows the entire monthly income of the family and the monthly debts.
- The listing agreement that you have with the realtor.
- A duly signed purchase agreement that you have made with the buyer.
- Copy of all the invoices issued to you by the Home Owners' Association and the association's contact address.
- Copy of any delinquency or default notice that you may have received.
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