Joe Ciaccio

most lenders now have the appropriate forms you need to begin the short sale process on their web sites. You will still have a 60-90 day waiting period for approval when all is said and done. Typically you will need the seller's last five years of tax returns (if he/she has not filed you will need a hardship letter from the seller along with the IRS 4506tez form), a profit and loss statement, and last three month bank statements. You will also need an authorization letter from the seller giving you permission to speak with the lender about the account.

At the outset you will always be talking with someone new when you call the 800 number and have to go through the account number spiel etc. You should then land to a negotiator or account rep once everything is submitted properly. Be prepared at times to submit forms two and three times as they will lose things in their system. The negotiator or account rep will order the BPO. Make certain you provide the comps to the BPO agent along with accompanying him/her to the house and explaining any aspects that would effect pricing. The BPO has big weight in your offer approval.

Depending on the extent of the loss that the lender is going to take, the account rep may have to move it higher up the ladder for ultimate approval. You will also be asked to submit an estimated HUD. Fill out the HUD with all fees as some lenders will use that submittal as gospel and tell you they will accept your offer minus the HUD fees only. Look at a HUD from a previous closing and if you have to estimate up a little to cover junk fees that is fine.

During all of this you need to keep the buyer or buyer agent informed so they don't drift off. Telling them at the outset what the timetable will be is paramount in the process.

Staying on top of this and providing everything the lender requires should have you well on your way to an accepted short sale. This and a heavy dose of patience will lead you to the closing table!