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Yes! It’s Another Short Sale Blog.

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But worth your while, I guarantee you.  The Troia Team from Boulder Colorado is writing so much on the subject lately because IT IS the subject lately.  Real estate short sales are everywhere and the numerous listings are partially due to the Home Affordable Foreclosure Alternatives Program; go ahead, call it HAFA. 

The information is non-ending.  You can’t write enough about short sales.  As we discussed before, having a knowledgeable Realtor is most important.  One who can walk you through the process.  If I were going through a short sale, here’s what I would want to know from my real estate agent.

 

 

What’s first? As a seller, you need to thumb through all those mortgage papers and give your agent the most information possible.  Lender’s name, number, address and your account number.  Social security card number, payment history, and recent balance statement/bill are also helpful.  Mortgage and down paymentIt’s not always easy to contact the appropriate person at the bank but it’s not impossible.  One of the other pertinent pieces of information I learned at a short sale class is BE NICE.  Courtesy will get you a long way.  Many of the employees working on short sales at the bank are overworked and underpaid.  Ticking them off will get you nowhere fast.

A letter of authorization is necessary so create it before the lender asks.  Your real estate agent will help you write a letter giving the lender permission to talk with those specific interested parties about your loan.  Include your property address, loan reference number, your name, the date, and your agent’s name and contact information.

Conduct a preliminary net sheet or estimated closing statement.  Again, your agent can help and so can the lawyer (which I always advise one).  This will include: 1) sale price approximation, 2) unpaid loan balances, 3) title costs, lawyer fees, lender fees, 4) late fees, and 5) real estate commissions.

The hardship letter.  Be expecting a blog with sample letters.  It’s exactly how it sounds.  Explain why you need a short sale.  What is happening to create financial distress in your life.  Divorce?  Job loss?  BE HONEST!  Dishonesty may get you rejected by the lender and besides, it’s bad karma.

Proof of income and assets.  Again, BE HONEST.  Name all your assets, saving accounts, money market accounts, 401k, any other stocks/bonds, other real estate, income and copies of bank statements.  It’s possible you may not qualify for a short sale if you have enough assets to cover unpaid debt.

Next, your comparative market analysis prepared by your real estate agent which includes active listings on the market, pending sales and solds from the last six months.

Lastly, the lender loves to see the purchase agreement (offer) and listing contract.  You’ll have a listing contract with your real estate agent when you begin and after your home has been on the market, a buyer (or several) will come along and make offers.  Accept one and have it ready to submit with the above information.  Lenders usually try to renegotiate offers and commissions and refuse to pay for inspection items.

It may seem like a lot of documentation but that is why expertise representation is so essential.  The Troia Team can help with these forms and the entire short sale process.  Register with our site and receive updated real estate news and let me know if you have any questions regarding short sales!

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  1. Cathrine Biez

    Do you think the loan mod initiative is going to actually save the US economy? Isn’t job growth the number 1 answer for stimulating a local market?

  2. Julie Johnson

    No, not save the economy. It’s a small piece of the pie just as job growth is. Short sales are happening here and now and will help a lot of people avoid foreclosure. Thank you for your comment.

  3. mls numbers

    Bill, I always like seeing this type of information. Very valuable for us in this business. ;-) Have a great Easter!

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