There is a better way.
Short Sale Information
If you want to pursue a short sale, there are procedures you must follow and guidelines your bank will use to determine if you are eligible. Short sales are different from regular sales and require more work and perseverance from you and your agent. They must be handled by competent professionals that have experience with short sales and systems in place. Persistence and preparation are the keys to getting a short sale through.
Here are the steps we will help you take to get your short sale started and successfully settled:
1. Contact your lender and locate the loss mitigation department and find a manager or someone who is capable of making a decision.
2. Submit a letter of authorization to the bank to give your agent or real estate attorney permission to deal on your behalf. It should include:
3. Provide a CMA and a net sheet to the bank to illustrate what the current value of your property is and what you can expect the net loss to be after subtracting all of the expenses to sell. This should include any back payments, unpaid taxes, liens, brokerage fees, etc. Your agent will help you prepare this.
4. Prepare a letter of hardship to explain to the bank why you need to sell short. Thi should include all of the reasons why you are in this financial situation. In the past, legitimate reasons have included: death, divorce, loss of job, illness or other catastrophic events. Other reasons are also legitimate. Don’t leave anything out. Buying expensive personal items, toys and cars are not legitimate reasons so beware.
5. Submit financial information including: recent paystubs, bank statements, and employment information.
6. Act quickly to provide the bank with what they need. It often takes weeks for them to submit and process your short sale package once they’ve received it. At that point, the bank’s loss mitigation departments will assign a negotiator to deal with your representatives
7. Submit purchase offers to your bank promptly. You may negotiate low offers before sending them to the bank in order to avoid the bank rejecting them. The offers can be accepted upon third party approval of the bank. The bank will need to see that your buyer is qualified to purchaser by reviewing all of their financial information. In addition, banks rarely pay other sundry items and practically always negotiate broker’s fees. It is a good idea to have your agent post in the listing that brokerage is subject to bank approval.
8. Request that the bank not submit adverse credit information to the credit bureaus as part of the negotiations , but they are under no obligation. Remember, in the end, a short sale is much better than a foreclosure.
9. We'll approach your lender and submit your short sale package before offering your home for
sale on the MRIS.Some agents will only show your short sale if they know that it has been approved and that your lenders are ready to negotiate.
** We'll be obligated disclose to potential buyers that all offers will require third party approval from your bank.
Here are the steps we will help you take to get your short sale started and successfully settled:
1. Contact your lender and locate the loss mitigation department and find a manager or someone who is capable of making a decision.
2. Submit a letter of authorization to the bank to give your agent or real estate attorney permission to deal on your behalf. It should include:
Your name
Property address
Your loan account number
3. Provide a CMA and a net sheet to the bank to illustrate what the current value of your property is and what you can expect the net loss to be after subtracting all of the expenses to sell. This should include any back payments, unpaid taxes, liens, brokerage fees, etc. Your agent will help you prepare this.
4. Prepare a letter of hardship to explain to the bank why you need to sell short. Thi should include all of the reasons why you are in this financial situation. In the past, legitimate reasons have included: death, divorce, loss of job, illness or other catastrophic events. Other reasons are also legitimate. Don’t leave anything out. Buying expensive personal items, toys and cars are not legitimate reasons so beware.
5. Submit financial information including: recent paystubs, bank statements, and employment information.
6. Act quickly to provide the bank with what they need. It often takes weeks for them to submit and process your short sale package once they’ve received it. At that point, the bank’s loss mitigation departments will assign a negotiator to deal with your representatives
7. Submit purchase offers to your bank promptly. You may negotiate low offers before sending them to the bank in order to avoid the bank rejecting them. The offers can be accepted upon third party approval of the bank. The bank will need to see that your buyer is qualified to purchaser by reviewing all of their financial information. In addition, banks rarely pay other sundry items and practically always negotiate broker’s fees. It is a good idea to have your agent post in the listing that brokerage is subject to bank approval.
8. Request that the bank not submit adverse credit information to the credit bureaus as part of the negotiations , but they are under no obligation. Remember, in the end, a short sale is much better than a foreclosure.
9. We'll approach your lender and submit your short sale package before offering your home for
sale on the MRIS.Some agents will only show your short sale if they know that it has been approved and that your lenders are ready to negotiate.
** We'll be obligated disclose to potential buyers that all offers will require third party approval from your bank.
6 Montgomery Village Ave., Suite 200
Gaitherburg, MD 20879
Copyright www.reosandshortsales.com 2009