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:
- 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.
- 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
- 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.
- 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.
- 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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