Documents depend on the lender. Each lender has different requirements. It is typical to require hardship letter, purchase and sales contract, settlement statemen (HUD1), pay stubs, bank statements, personal financial sheet (monthly budget).
You need the following:
1. Contract between you and the owner.
2. Net sheet showing the amount the lender will receive at settlement.
3. Letter of authorization signed by the owner to allow you to speak with lender.
4. Hardship letter as to why the owner cannot make the mortgage payments.
5. Complete financials (income and expenses)
6. Copy of 2 years tax returns
7. Copy of 2 months of pay stubs
I also recommend that you include:
1. Pictures of the property
2. An itemized list of the deficiencies and the cost to correct them. (You cannot include replacing the kitchen and windows since these are improvements not necessary repairs)
3. Comps showing what the value of properties IN THE SAME CONDITION as this one (Not the ones that look like Southern Living resale properties)
4. Justify your contract price by showing that the cost to bring the property up to the standard for a good resale requires a short sale.
Quote:
On 2004-04-30 16:11, bgrossnickle wrote:
Documents depend on the lender. Each lender has different requirements. It is typical to require hardship letter, purchase and sales contract, settlement statemen (HUD1), pay stubs, bank statements, personal financial sheet (monthly budget).
Hi bgrossnickle,
Where can I get an example of the settlement statement/HUD 1? Or does this come from the lender?
Thanks!
You do not need a HUD-1 in order to submit your short sale package. Instead of a HUD, use a net to seller. This is used to show the lender how much they will net from the short sale. The HUD-1 will come at the time of closing and is supplied by the title company. Make sure you have a relationship with a closing attorney that does double closings if you are looking to sell the property to another investor for a profit. It is also a good idea to build relationships with a title company and a real estate agent to list your properties and to help you with the negotiation if needed.
Quote:
On 2004-04-30 17:37, homebuyer13 wrote:
Hello,
You do not need a HUD-1 in order to submit your short sale package. Instead of a HUD, use a net to seller. This is used to show the lender how much they will net from the short sale. The HUD-1 will come at the time of closing and is supplied by the title company. Make sure you have a relationship with a closing attorney that does double closings if you are looking to sell the property to another investor for a profit. It is also a good idea to build relationships with a title company and a real estate agent to list your properties and to help you with the negotiation if needed.
I think maybe to find out first off if the lender will actually entertain a short or work out plan, application for work out consideration..Once this has been established with the lender then all the above posts are right on. also, along with all the emperical data etc, I find its always good to have a summary of your data to support your position, in lieu of the owner.
Documents depend on the lender. Each lender has different requirements. It is typical to require hardship letter, purchase and sales contract, settlement statemen (HUD1), pay stubs, bank statements, personal financial sheet (monthly budget).
You need the following:
1. Contract between you and the owner.
2. Net sheet showing the amount the lender will receive at settlement.
3. Letter of authorization signed by the owner to allow you to speak with lender.
4. Hardship letter as to why the owner cannot make the mortgage payments.
5. Complete financials (income and expenses)
6. Copy of 2 years tax returns
7. Copy of 2 months of pay stubs
I also recommend that you include:
1. Pictures of the property
2. An itemized list of the deficiencies and the cost to correct them. (You cannot include replacing the kitchen and windows since these are improvements not necessary repairs)
3. Comps showing what the value of properties IN THE SAME CONDITION as this one (Not the ones that look like Southern Living resale properties)
4. Justify your contract price by showing that the cost to bring the property up to the standard for a good resale requires a short sale.
I hope this helps.
Barbara 8-)
Thanks, but I don't have those pay stubs, nor tax returns.(i really don't I wasn't living in the us.)
So how can I do this?
Quote:
On 2004-04-30 16:11, bgrossnickle wrote:
Documents depend on the lender. Each lender has different requirements. It is typical to require hardship letter, purchase and sales contract, settlement statemen (HUD1), pay stubs, bank statements, personal financial sheet (monthly budget).
Hi bgrossnickle,
Where can I get an example of the settlement statement/HUD 1? Or does this come from the lender?
Thanks!
Hello,
You do not need a HUD-1 in order to submit your short sale package. Instead of a HUD, use a net to seller. This is used to show the lender how much they will net from the short sale. The HUD-1 will come at the time of closing and is supplied by the title company. Make sure you have a relationship with a closing attorney that does double closings if you are looking to sell the property to another investor for a profit. It is also a good idea to build relationships with a title company and a real estate agent to list your properties and to help you with the negotiation if needed.
Quote:
On 2004-04-30 17:37, homebuyer13 wrote:
Hello,
You do not need a HUD-1 in order to submit your short sale package. Instead of a HUD, use a net to seller. This is used to show the lender how much they will net from the short sale. The HUD-1 will come at the time of closing and is supplied by the title company. Make sure you have a relationship with a closing attorney that does double closings if you are looking to sell the property to another investor for a profit. It is also a good idea to build relationships with a title company and a real estate agent to list your properties and to help you with the negotiation if needed.
Thanks homebuyer13.
I think maybe to find out first off if the lender will actually entertain a short or work out plan, application for work out consideration..Once this has been established with the lender then all the above posts are right on. also, along with all the emperical data etc, I find its always good to have a summary of your data to support your position, in lieu of the owner.
hope this helps and good luck.
regards-pat