First of all I do not believe
that any real estate agent should list a home as a short sale without having
done some research first.
Research
You should have a preliminary
title search done to determine if there is a second mortgage or any other liens
on the property. Determine who the owner(s) are.
Document Collection
Next, you should collect all of
the necessary paperwork that the lender will require for their short sale
package. (Some banks require less/more documentation but this is a very
‘standard’ list)
Obviously the following that you’d
normally complete:
·
CMA - YES, you need to know the market
value of the property!
·
Listing Agreement
·
Short Sale Addendum
(if your board doesn’t have one yet you should get an attorney to create one
for you)
·
Seller’s Real Property
Disclosure (Yes, even AS IS deals)
·
HOA documents/
HOA/Condo disclosures as necessary
·
Lead Based Paint
Disclosure as necessary (pre 1978)
·
Last 2 year’s tax
returns
·
Last 2 month’s bank
statements
·
Last 2 pay check stubs
·
Letter of
Authorization
·
Financial Statement
·
Hardship Letter
(if
customer is missing a tax return or pay check stub have them write an
explanation as to WHY (i.e. No paycheck stubs because they are 1099 contractor)
*for your info: Copy of mortgage
statements
·
If there are 2
lenders you will need these documents for each.
We look forward to working with
the other professional real estate agencies on short sales and the many buyers
and sellers as well.
Yours in Success,
Susan Milner
Florida Future Realty, Inc.
888-764-6665 toll free
239-542-8521 local
To read the entire 4 part article: Short Sales
Copyright 2008 Susan Milner
Yours in Success,
Susan Milner
Florida Future Realty, Inc
http://www.YouTube.com/FloridaFuture
(239) 542-8521
Susan@SusanMilner.com
We also handle Cape Coral Short Sales......
copyright 2008-2012 Susan Milner of Florida Future Realty Inc
Great information here, and I will continue to read the other part of your short sales information.
You must work a lot with short sales and I love that you are sharing, as I'm just getting involved with this.
Hi Susan,
Thanks for sharing and I look forward to reading Part 2. Have a great week. Michael A. Caruso
Great advice for a very thorough lender package. You might want to go into detail about the hardship letter later in the series. In my experience, people tend to gloss over their troubles rather than expressing them fully. Great post, and I'm looking forward to the rest of the series!
Andy, thank you for stopping by. I hope you enjoy the other 3 parts as well.
Michael, thanks. The other 3 steps are up. Let me know your thoughts.
Ray, good suggestion. The hardship letter is important because a real human being is reading it. They want a timeline of what happened and why. Hope you enjoyed the other 3 parts.
Susan,
It's good to see you put the effort into accepting the realities of the market and making sure short sales are done properly. I have talked to far too many realtors...my sister-in-law included, who refuse to do short sales because of the stigma associated with the sale. Sorry but the reality is that the market has to purge itself of the unsustainable excesses that took place in many markets around the country over the past several years. The notion that real estate only goes up is a flawed idea and when markets need correcting you find and accept the best tools to help that process. The use of short sales in today's market is no different than other marketing tools like the 3-2-1 buy downs of the early 80's to help in difficult economic times.
Good luck and hope you can be a positive force in righting this crazy market.
40% of what is said is leaving out the rest. Whom does she represent in the transaction. The seller of course. If you want the real truth about short sale and the total truth, ask a very good realtor that knows more about the pitfalls and is willing to tell you the whole truth. If you don't you are asking for big problems.
40% of what is said is leaving out the rest. Whom does she represent in the transaction. The seller of course. If you want the real truth about short sale and the total truth, ask a very good realtor that knows more about the pitfalls and is willing to tell you the whole truth. If you don't you are asking for big problems.
"Paul",
We also work with buyers and yes, short sales can take some extra time but if your agent is knowledgeable about the process and the buyer has a little extra time to wait for a good deal, short sales can be great opportunities for buyers.
Nice post Susan, thanks for sharing with all of us!