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About Us What is a Short Sale? Seller Information List with us Buyer Information Tax and Legal Issues Resources HAFA Program Contact |
Seller Information What to expect After listing your house, we will need to find a buyer. This can take any amount of time, however with the right pricing we should be able to find a buyer within 90 days on the market. Once we have a contract on the property, we will start the negotiation process with the bank on your behalf. The time line varies with different banks, with some taking as little as a few weeks and others up to 6 months. Patience is key, for both buyer and seller. You can still live in the home while we negotiate the sale. Your lender will want to see documentation showing your hardship, as well as all documents pertaining to the sale. This is called the Short Sale Package. Each lender has their own guidelines and documentation they will want to see, however below is a general list of documents required: -Letter of Authorization from you that permits us to speak with the lender on your behalf. Note, this simply gives us permission to communicate with the lender, not make any decisions. -Hardhip Letter explaining the particular circumstances that lead to your hardship. This would include things like job loss, divorce, death, disease/health, job transfer, increase of debt, decrease of income, etc. -Financial Documents outlining your household income and liabilities -2 Years Tax Returns -2 Month Bank Statments -2 Month Pay Stubs -Personal Financial Statement -Listing Agreement -Preliminary Title Report (from Title) -Tax Record Comparable Sales/Value Report -Purchase Contact with all Counter Offers and Addendums -MLS Sheet -Comparable Market Analysis -Showing Activity(if available) -Showing Feedback (if available) -HUD-1 (from Title) Once a purchase contract is in hand and the short sale package complete, we start navigating through your lender(s) loss mitigation department. This process is similar to underwriting, however, in this case your lender are seeking to disqualify you from the loan. They need to verify your inability to afford the loan and determine if they will net more money through this Short Sale or through a Trustee’s Sale (Foreclosure). Once approval from your lender has been obtained, we will proceed with the closing as any normal sale. Your lender may ask for you to participate in the loss with either a cash contribution at close of escrow, or by signing a promissory note for a negotiated amount. There is no way of knowing wether your lender will ask for a seller contribution until the last stages of the Short Sale negotiations. THERE ARE LEGAL AND TAX CONCEQUENSES TO PERFORMING A SHORT SALE, AS IT IS WITH LETTING YOUR HOUSE FORECLOSE. PLEASE SEEK LEGAL AND TAX ADVICE FROM A QUALIFIED PROFESSIONAL! Ready to List? Call us or Click Here to fill in our Listing Form, and we will contact you shortly to set up a consultation.
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