For short sales - do you find a buyer first and then submit an application to the lender for a short sale or do you get pre-approval to do a short

Asked by Haywardcondo, Hayward, CA Sat Jul 30, 2011

sale from the lender first and then try to find a buyer? Also, are the banks asking for proof of residency, like utility bills?

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Dawn Rivera, Agent, Fremont, CA
Mon Aug 1, 2011
Hi Hayward, It depends on who your loan or loans are with. BofA has a online system called Equator that allows your realtor to put it in the system before you get an offer. Equator has also recently added wells fargo, ASC, BSI financial Services, and Nationstar Mortgage. If you do not have one of those lenders you will have to sign a third party authorization so your agent can call your lender to ask about their shortsale package and you will most likely have to get an offer before you can submit the package. Each bank has a different policy and so you or your realtor will need to call them.....I am in the midle of a short sale in Vallejo and it is a HAFA short sale and they HAVE asked for a gas bill, water bill or electric bill. If your loan was a frannie mae or freddie mac your loan will qualify for HAFA and they will ask. (call me if you have more questions about this) ..... I have other short sales in hayward and just closed one in fremont. I am very good at getting a short sale closed if you need my help feel free to contact me....Dawn 510-909-0373
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Pp Bb, Agent, Pomona, CA
Sun Jul 31, 2011
it does depend on your bank & the type of loan you have. you can call the banks customer service number and ask them, or you can talk to an experienced short sale Real Estate agent. Hope this helps. good luck to you.
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Margaret Has…, Agent, Tampa, FL
Sat Jul 30, 2011
Before you start the short sale process, the bank requires you to list your home with a Realtor. The Realtor will list your property at or a bit below market value, to bring a buyer. Once an offer is made on the property, the Realtor will collect all the bank-required documentation from you and submit it to the bank with the offer.

In my experience, I have never had a bank ask a seller for utility bills or proof of residency.
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Gerard Carney, Agent, Spring Hill, FL
Sat Jul 30, 2011
You get a short slae when you prove to the bank financial hardship, not by getting a buyer with an offer, though if you have a buyer in mind and they are willing to offer, tell them to wait till the short sale gets approved!
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John Arendsen, Agent, Leucadia, CA
Sat Jul 30, 2011
If you're asking this question you definitely need a RE professional to help you. Good luck.
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Eli Givoni-S…, , Boca Raton, FL
Sat Jul 30, 2011
We suggest you get an offer first and then submit the package. Without an offer, there's nothing to negotiate. Although, if you have missed many payments, we would likely call the bank to make sure there is no auction scheduled. Feel free to call with any questions.

Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states

MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
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Walter 'Skip'…, Agent, Brea, CA
Sat Jul 30, 2011
With most banks today you can do it either way. A HAFA short sale allows you to prove hardship and agree to a list price with the lenders before putting the property on the market. (You can also apply for a HAFA short sale after a offer is received.) Often times the majority of the hardship paperwork is completed during the attempt at a loan modification.
Good luck,
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Christy Brock, Agent, Alameda, CA
Sat Jul 30, 2011
The best answer depends. It depends on the type of loan you have and the lender. If you are eligible for a HAFA short sale you may want to submit for approval before you have an offer. If your loan is with Bank of America you may want to submit for approval before you have an offer. How you proceed depends on your agent's advice, the lender and the type of loan.

As for your 2nd question, the answer is the same. Some lenders require proof of residency. HAFA deals require proof of residency.
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