There are so many things required i this transaction. Typically, the short sale lender needs the following from his selller
Hardship letter to prove the reason for his distress and why he needs to sell
Financial statement -- showing how much he makes, compared to his expenses
Most recent pay stubs or sources of income (the info needs to be updated more than once)
Most recent bank statements (savings, checking, etc)
Last 2 income tax returns
Request for Approval of Short Sale (RASS) to match exactly what it says on the HUD closing statement
HUD closing statement showing details about the sale, closing costs, pay offs
Affidavit of arms length transaction among the buyer, seller and their agents
Copy of the listing agreement
Copy of the purchase agreement
Authorization from seller to his agent to communicate with the short sale lien holders
Comps to justify list/purchase price
And if there is more than one seller on the loan, the same will be requested of the other seller. This can be requested of divorced/separated couples even if one of them has given a quit claim deed. The quit claim deed doesn't necessarily absolve the person from the loan obligations.
As such...yes it can and will take some time to pull this all together.
Hopefully your own realtor has adequately prepared you on what to expect from a short sale purchase?
The key is to be patient and most of the short sales do go through. However, I am seeing tht the Banks are becoming adamant about the price they want for the property and they will not give in even when there may be a cash offer.
Short sales are still hard to predict but the fact that there is communication going on, that is usually a good thing. Common docs requested from a seller are usually the last two bank statements, check stubs, tax returns, pretty much all paperwork proving they can not make payments on the mortgage so they should allow the short sale to proceed. Please feel free to call or email me if you need further information.
When a short sale bank is asking for more documents that usually indicates they are working on the file. Communication from a short sale bank is promising because that means the short sale process is moving along. Usually when there are more requests for documents, the bank is getting closer to give s short sale approval letter. Short sale buyers that patiently wait through the short sale process will have the benefits buying at a great time with lower prices and affordable mortgage rates.
Prudential California Realty