Question Details

Allan 'AJ' J…, Real Estate Pro in Phoenix, AZ

Short sale with no financials?

Asked by Allan 'AJ' Jaffray, Phoenix, AZ Wed Jun 25, 2008

My client has been advised by legal console to NOT provide his financial information until bank has agreed to short sale in writing. Will this fly with the bank?

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13
I have beed working short sales for years and have never heard of a bank authorizing a short even verbally without every last drop of info they want I have even had them contact employers to confirm info sent. Banks are not stupid if you do not want to provide your info they like many of us are probably going to assume it is because there is something to hide. Good luck with that one!!!!
2 votes Thank Flag Link Wed Jun 25, 2008
In order to be eligible for a short sale, a homeowner must be able to PROVE to the lender that they are a victim to a “hardship” and are therefore unable to continue making payments on their mortgage. I've never worked with a lender that didn't require financial statements.
1 vote Thank Flag Link Mon Jul 21, 2008
As a lender, I'd advise your client to speak with a real attorney, not cousin Jim or the guy at the end of the bar. I don't intend that to sound mean, but advice so far off base from market demands strongly suggests it comes from someone with little or no knowledge about the mortgage industry.

I can't think of any lender willing to waste time on a short sale offer without some sort of evidence that the buyer is capable of performing his/her end of the contract.

Some lenders, in fact refuse to consider a short sale offer at all without a pre-approval of the buyer from their own retail mortgage division.

You'll need some gentle persuasion to help your client succeed with his/her purchase.
1 vote Thank Flag Link Wed Jun 25, 2008
LOL, LOL --- Wow, I am having a tough time with this one. I'm still not sure how to answer this question with competence. For the first time I don't have an answer. Thanks.
0 votes Thank Flag Link Tue Sep 28, 2010
Probably not. You can try to proceed, but it's almost a guarantee that lender will require this information.
0 votes Thank Flag Link Mon Sep 27, 2010
I highly doubt that. Every short sale I completed required financials and the lender would not proceed without them.
0 votes Thank Flag Link Mon Sep 27, 2010
I've only had 1 short sale where my client did not have any bank statements (lost job a year ago and closed accounts)...since losing job, didn't have any tax returns as well. Bank approved short sale with only his hardship letter, Offer, Listing agreement and HUD. This is a highly unusual case but it was done and closed within 45 days total!

Lisa Allen, REALTOR, CDPE, SFR
Short Sale Specialist
404-925-8261
LisasListings@att.net
0 votes Thank Flag Link Fri Sep 24, 2010
Never done one for the most part. I have one investor who agreed to repay everything who really didn't have to do anything, and a couple very small lenders that are hard money loans and such. Major bank, no way. For ALL short sale stuff:
0 votes Thank Flag Link Wed Apr 28, 2010
Never.... the bank first has to qualify the buyer financially to be able to even consider them for a short sale. after that they compare the amount they will get for teh short sale as opposed to foreclosing. Of course it takes 3-6 months to get this, but simply they will need to send in financials, without them you are dead in the water before you start.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Oct 16, 2008
9 out of 10 times, no (in my experiances)!! Banks require proper financial documents, weither they actually review these documents in full is another story. This requirement is used to entertain all offers presented.
0 votes Thank Flag Link Thu Oct 16, 2008
No, No, No, this will not fly! The simple truth of the matter is that banks base their loan modifications on hardship and, the only way I know to prove hardship is through financials. So, if your client doesn't release his financials, then hardship can't be proven and therefore, loan modifications, workouts or short sales aren't going to be an option.

Tell your client to go speak with an Attorney experienced in short sales.

http://www.JesseGonzalezRealEstate.com
0 votes Thank Flag Link Tue Jul 22, 2008
NO. It's been my experience that attorneys that aren't experienced with short sales (and many aren't) can ruin a home seller's chance of successfully completing a short sale. Attorneys arent' real estate agents and they aren't the be-all, end-all to short sales. You must send a complete paperwork package to the loss mitigation department, including a financial sheet. Even if you get a great offer on the house, the short sale won't be considered. Our real estate contracts say " seek competent legal advice," not "advice from idiots." Not everyone who gets a J.D. is competent. Find another attorney for your client.
0 votes Thank Flag Link Sat Jun 28, 2008
Allan, did he explain why? Does the owner have sufficient assets to make the loan whole? If so, their chances of getting the short sale approced are slim to none. Recommend your clients get an attorney that specializes in short sales and foreclosures. Doesn't sound like this attorney is doing his clients any justice or perhaps they haven't given you all the facts. Either way, I've never seen a bank agree to a short sale without all the facts. Best of luck!
Web Reference: http://www.curtdarragh.com
0 votes Thank Flag Link Fri Jun 27, 2008
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