Short Sales and How I Think They Should Be Handled Part 1 of 4

First of all I do not believe that any real estate agent should list a home as a short sale without having done some research first.

 

 

Research

 

You should have a preliminary title search done to determine if there is a second mortgage or any other liens on the property. Determine who the owner(s) are.

 

           

 

Document Collection

 

Next, you should collect all of the necessary paperwork that the lender will require for their short sale package. (Some banks require less/more documentation but this is a very ‘standard’ list)

 

Obviously the following that you’d normally complete:

 

·         CMA         - YES, you need to know the market value of the property!

·         Listing Agreement

·         Short Sale Addendum (if your board doesn’t have one yet you should get an attorney to create one for you)

·         Seller’s Real Property Disclosure (Yes, even AS IS deals)

·         HOA documents/ HOA/Condo disclosures as necessary

·         Lead Based Paint Disclosure as necessary (pre 1978)

 

 

·         Last 2 year’s tax returns

·         Last 2 month’s bank statements

·         Last 2 pay check stubs

·         Letter of Authorization

·         Financial Statement

·         Hardship Letter

 

(if customer is missing a tax return or pay check stub have them write an explanation as to WHY (i.e. No paycheck stubs because they are 1099 contractor)

 

*for your info: Copy of mortgage statements

                                               

·         If there are 2 lenders you will need these documents for each.

We look forward to working with the other professional real estate agencies on short sales and the many buyers and sellers as well.

 

Yours in Success,

 

Susan Milner

Florida Future Realty, Inc.

www.Florida-Future-Realty.com

www.The-Extreme-Team.com

888-764-6665 toll free

239-542-8521 local

Susan@SusanMilner.com

 

To read the entire 4 part article: Short Sales
Copyright 2008 Susan Milner