Short Sales for Sellers (Chapter 2) You Qualify for a Short Sale, now what?

By
Real Estate Agent with eXp Realty

 

In Chapter 1, we went over on how the distressed homeowner wanting to avoid foreclosure qualifies for a Short Sale. Now that it has been determined that you qualify for a Short Sale , what's the next step?

Your case for why your Lender should approve a short sale on your behalf will be presented to your Lender by a skilled Short Sale Specialist.

As a Realtor, representing distressed homeowners, I have to provide a good and solid argument to your Lender that is backed by market statistics, proof of your financial hardship and good negotiation skills. It's not for the faint of heart. But you, as the distressed homeowner trying to avoid foreclosure must be willing to provide the necessary documents to your Realtor.

Let's take a look at what the Lenders will want to see from you:

  1. Hardship Letter - they will want to know exactly what put you into your current financial distress. What has happened since you purchased your home that you can no longer afford to make your mortgage payments. This letter needs to be written by you, the homeowner. You do not want to generalize and leave out any details. From what you write, the Lender needs to almost experience what it is you tell them; understanding your heartaches. Lenders run a business yes, but they're people too.
  2. Proof - and then more proof. The Lender doesn't want to hear a heart wrenching Hardship letter and see that you have a nice savings account. Absolutely not. Proof will come in the form of:
    • Pay stubs - the last two
    • Bank Statements - the last two months for checking and savings accounts
    • Tax Returns - the last two years
    • W-2's - the last two years
    • Documentation of your Harship if it's the result of a Medical illness, unemployment, divorce, death or other hardship
  3. Your home needs to be listed for sale by a Realtor - they'll want to see that your home is marketed in a way to receive the best possible fair market value.
  4. Authorization given to your Realtor - your Lender will only speak to another party with your written authorization. I require that my customers Letters of Authorization are notarized.
  5. No monies to be received by you, as the Seller

The more you know, the better prepared, the better the outcome.  Stay tuned for the next Chapter addressing Short Sales. Come back soon to see the next released Chapter.  Got something that you'd like addressed, let me know.

I serve Coral Springs and the surrounding cities such as Coconut Creek, Parkland and Sunrise in Broward County of South Florida as your dedicated Realtor ready to work for you. Looking forward to seeing you soon.   

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The more you know,  the better prepared, the better the outcome.

Whether you're Selling your home in Coral Springs or Buying your home in Coral Springs or other Southeast Florida cities from Boca Raton south to Miramar, I promise to be on your side working hard for you as your Coral Springs Realtor and South Florida Realor. Helping homeowners with Coral Springs Real Estate and the Real Estate in surrounding cities such as Coral Springs, Coconut Creek, Parkland, Plantation, Pembroke Pines, Margate, Miramar, Tamarac and Sunrise in Broward county to the cities of Boca Raton, Delray Beach and Boynton Beach in Palm Beach county. 

 As your dedicated Coral Springs Realtor, Short Sale Specialist, Keller Williams South Florida Real Estate Agent, Coral Springs Short Sale Realtor, South Florida Short Sale Realtor and CDPE Certified Distressed Property Expert, I'm ready to work hard for you.

 Real Estate Promises Delivered

I'm looking forward to hearing from you soon. Please call me at 954-464-1100 or email me at: lynnp@ImagineYourHouse and it would be my pleasure to help you!

Learn more about me and Coral Springs Real Estate as your Coral Springs Realtor and Coral Springs Short Sale Realtor 

 

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Show All Comments
Rainer
34,960
Bo Buchanan
Kettley Realtors - Oswego, IL

Lynn - I've never done a notarized letter of authorization and I've never had a letter questioned.  Why do you notarize them?

Jun 12, 2008 04:55 PM #1
Anonymous
Anonymous

Bo, I simply like the extra protection that the notarized letter offers to me as a Realtor processing a complicated short sale. Thanks for commenting.

Jun 13, 2008 01:32 PM #2
Rainmaker
365,288
Lynn Pineda
eXp Realty - Boca Raton, FL
Real Estate Promises delivered in SE Florida

Bo, the comment above was from me.  Not logged on again.  I seem to get kicked off a lot now whereas before here on AR I had to log on once and I stayed that way until I logged off.

Jun 13, 2008 01:34 PM #3
Rainer
19,256
Wayne Gabriel
RE/MAX Premier Group - Wesley Chapel, FL
GRI, SFR 203K Certified

I've use the FAR Short Sale Addendum to Listing Agreement as my authorization twice recently. The lenders in both cases accepted it. There's no place for a notary but it could be added at eh bottom. The nice thing about it is that all the "disclaimers" are covered.

Jun 13, 2008 03:07 PM #4
Rainmaker
365,288
Lynn Pineda
eXp Realty - Boca Raton, FL
Real Estate Promises delivered in SE Florida

Wayne, I use the FAR Short Sale Addendum also down here in South Florida. That's interesting that the Lender would use that as authorization. It just goes to show that each Lender has their own rules.

Jun 13, 2008 03:26 PM #5
Rainer
19,256
Wayne Gabriel
RE/MAX Premier Group - Wesley Chapel, FL
GRI, SFR 203K Certified

The only thing I had to add on my most recent one was the account number and the last four digits of the primary borrower's SSA#.

Jun 14, 2008 01:45 AM #6
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Rainmaker
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Lynn Pineda

Real Estate Promises delivered in SE Florida
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