How to prepare for a Short Sale before you begin the Sales
As some of you know, I have written what a Short Sale is
from a Sellerâ€™s Perspective at the end of August. Just in case you missed it I
am enclosing a link to that post (http://actvra.in/GWv
) Now I would like to focus on how to prepare for the Short Sale Process.
The First Step:
The Realtor & the Seller should have an extensive, truthful discussion
about the Sellerâ€™s financial status. Honesty and full disclosure are essential
to the successful closing of a short sale transaction.
The Second Step:Â Â The seller & the listing agent need
to work together. Now with that said the Seller needs to contact the lender and
feel out the Lender how open are they to a Short Pay Off? This is a complex
transaction and both Seller & Listing Agent have to work harder to get a
successful closing of the transaction.
Keep in mind the Process consists of convincing the Lender
to reduce the loan balance and close the transaction. This is not that easy and
is very challenging. What you need is good negotiation skill from both the
Seller and the Listing Agent.
The Third Step: Â This is the hardest part Working with the
Lender determine the Lenderâ€™s Guidelines. The best thing you can do is
anticipate the list of required documents at the begin Â be prepared at least with the following:
1. Â Â
The listing agreement
2. Â Â
evidence of financial hardship to the Lender (strong evidence is key)
3. Â Â
Proof of income or the lack of
4. Â Â
Two years worth of Tax returns & W-2s
5. Â Â
Latest personal checking account statement
6. Â Â
Copies of all past due secured and unsecured
7. Â Â
Latest mortgage statement
8. Â Â
Current Tax bill
This will put you in the right
direction to a successful Closing of a Short Sale. There are a lot of other
things to consider. Most of all have a skilled and trustworthy Realtor to help
you through the difficult challenges of a short sale.
If you are a consumer who is considering
buying or selling a home, investment real estate, vacation homes, or beach
properties in Southern California, Los Angeles, Century City, Westwood, West
Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel
Free to give me a call at 310.486.1002 or emails me at email@example.com or visit one of my websites at http://www.endrebarath.com Your Pet
Friendly Realtor. I contribute a portion of my commission to
Local Animal Rescue Organizations.