SHORT SALE SEMINAR

This information is equivalent to any Short Sale Seminar that you might attend. Follow the instructions carefully and you should become a successful short sale specialist.

Short Sale Package

These are the items to be sent to the lender. There are additional items over and above what the lender required. Here is what's included:

Cover Letter

This is written by you to the lender giving a brief description of the seller's situation, their loan number, home address, property address if different from the home address, what's owed, what it's worth, the condition of the property and the dollar amount of the offer to purchase.

Hardship Letter

The presentation of this letter is extremely important. It should be handwritten by the homeowner and be no more than 2 pages. It should include their names, address, property address if different from their residence, account number and the reason why they are having difficulty paying their mortgage. Most of all it has to be absolutely truthful.

Financial Statement

This document shows the seller's monthly income and expenses as well as their assets and liabilities. It's relatively easy for the lender to check the accuracy of this information, so it should list everything. Obviously, if the income and/or assets are great enough, the lender won't be as willing to take the loss without the seller depleting their assets.

Bank Statements

The lender will want to see 2 months of bank statements, retirement account statements and investment account statements.

Pay Stubs

Return 2 most recent pay stubs, pension check stubs, disability check stubs or records of any other regular income.

Preliminary HUD-1 Settlement Statement

Realtors® and investors should contact their regular Title Company and ask them for a PRELIMINARY Settlement Statement. It must say "PRELIMIARY" across the front or the lender can hold you to the figures.

Hold Harmless Agreement

The form will help protect you against a lawsuit.

AS-IS Purchase and Sale Agreement

The lender will not make any repairs. When a buyer submits a contract, it must be an AS-IS contract.

Supporting Hardship Documents

You should include any supporting hardship documents, such as medical bills, layoff notice, divorce papers, or death certificate for co-borrower.

Short Sale Addendum

An addendum to the contract should be included which specifies the following:

1. Buyer is purchasing AS-IS.
   
   
2. This contract is contingent upon lender approval.
   
   
3. This transaction is contingent upon a clean title search.
   
   
4. Buyer understands that a short sale may take up to 90 days to complete.
   
   
5. Buyer shall have access to the property to show lenders, inspectors, and other interested parties prior to closing.

Seller's Property Disclosure

This should be included as part of the contract.

Comparables

Comparables of sold homes in the area for the last 6 months. If you are in an area where the real estate market is extremely slow, the you can go back 12 months. Look for the lowest comparables.

Photos or News Articles

If there are problems with the property, take photos. Also, if there's something news worthy in a negative way, whether it be the fact that the real estate market is much worse than in other areas of the country or crime in the area is a problem, include the articles.

Local Real Estate Statistics

Include statistics, such as, average length of time on the market, number of homes on the market, average home price 1 year ago, 6 months ago and today to show a downward trend.

If you want more information on whether you really should try to save your home you can find out here.