| Short sales, short sales, short sales. They are | | | | - Two years of tax returns and W-2's. |
| everywhere. Many Bradenton - Sarasota, Florida | | | | Remember to provide signed copies of tax |
| homeowners are facing the risk of foreclosure in | | | | returns. |
| our declining market. For some, a short sale may | | | | - Signed IRS Form 4506 "Request for Copy of |
| be the solution. This is the 9th in a series of | | | | Tax Form". This is so that the lender can verify |
| articles to help Bradenton, Florida homeowners | | | | that the submitted returns actually match the |
| understand short sales. | | | | originals sent to the IRS. |
| When you go through the short sale process your | | | | - Two most recent bank statements and |
| lender will require certain documentation. | | | | retirement account statements. Be sure to copy |
| Remember, the lender does not want to take the | | | | both side of double-sided statements. |
| home back through foreclosure. That is a last | | | | - Two most recent pay stubs |
| resort for both the homeowner and the lender. | | | | - Current debt, payments and a household budget |
| The lender would rather accept a short sale as | | | | - Documentation supporting the hardship |
| long as the borrower can show an inability to pay | | | | (termination of employment letter, disability letter, |
| the mortgage. | | | | doctor bills, etc.) |
| Each lender has their list of required | | | | - A current Comparative Market Analysis (CMA) |
| documentation. Therefore, the first step is to give | | | | from a real estate broker or appraiser |
| your Realtor signed authorization to speak with | | | | - Estimated net sheet from a title company. The |
| the lender about your account. (See below for a | | | | settlement statement will show all of the |
| sample authorization letter.) | | | | expenses related to the sale with the seller |
| Your Realtor will then request a "short sale | | | | receiving zero. |
| package" from the lender. Most lenders require | | | | - A copy of the executed sales contract with |
| the following documentation. | | | | buyer's proof of funds or loan commitment. |
| - Hardship letter. A handwritten letter may be | | | | Never submit an incomplete package. Some |
| better to explain the borrower's situation and | | | | lenders receive hundreds of requests a day. It is |
| requesting a short sale. It should describe why the | | | | not uncommon for a loss mitigator to have 200 - |
| borrower cannot make their mortgage payments | | | | 400 files in which they are working. Incomplete |
| and their fear of possible foreclosure. It should be | | | | packages will be set aside and you will have to |
| a plea for the lender to consider a short sale. | | | | start over again. |