Short Sale "package" For Banks Review
I thought I'd share this with some of the noob's
Heres a quick list from one of the major mortgage lenders RE: their short sale package / documentation:
Veterens, add or comment on any of the line items as you see fit or have experience with.
LOSS MITIGATION INFO starts here:
"If you are requesting a Short Sale (i.e. the property will not sell for enough to cover all the mortgages) please provide the following information:
• Hardship Letter – a detailed explanation of why there is a need for a Short Sale and what the circumstances are.
• Copy of the estimated Settlement Sheet (HUD-1) – this includes the sales price, closing costs and fees, and all the mortgage pay off amounts. Please order the Irwin Mortgage Pay Off request in writing from our Pay Off Department at fax number 925-358-0294. Third party requests must include the borrowers written authorization.
• MLS history on the subject property for up to 1 year and either a recent appraisal on the subject property or 3 comparable properties with their list and sales prices.
• Copy of both the Listing Agreement and the executed Sales Contract – this reflects the sale price, commissions and other pertinent information.
• Financial Package – needed from all borrowers on this loan:
Recent bank statements/financial statements on all accounts
Pay stubs for the last 3 months (If individual or individuals are unemployed must have accompanying documentation, including records of unemployment compensation)
Tax returns including W’2 for the last 2 years
401K statement/statements
Retirement account statement/statements
List of other assets (other properties, vehicles, and other possessions)
• First mortgage and if applicable any subsequent mortgage pay off statements and their respective monthly billing statements or pay coupons.
-Matt
oops i forgot this part...
*** Note: The maximun total commission is 5%. Also, there can be no proceeds
going to our borrower, the seller and the seller cannot pay buyers closing costs.
Right on time...I posted in another forum and this is exactly the info I needed!!!!!
Thanks so much! <
Any addiitonal tips on working with loss mit? My experience is in rehab/new construction & the current deals on the table are short sales.
An Application will only take you so far. I recommend that you prepare and furnish an accompanying Proposal. A compelling proposal that will speak for you in your absence...
You see, when an application is considered for short sale approval, there won't be anyone voicing your passion, your conviction, and your confidence that by approving the application would be in their best, financial interest.
A well articulated, presentation quality Proposal placed in the appropriate hands will increase the likelihood of success.
If you utilize a shotgun/cookie-cutter approach and pump out lowball offers by the scores... then taking the time to devise a compelling Proposal doesn't make sense.
But, if your leads are limited... and you want to make the most of each and every opportunity... why not make it the best it can be?
[addsig]