The short sale process can be cumbersome. There is nothing ‘short’ about a short sale so below I will list some things to help you prepare for the long short sale process.
If you are the seller there first thing you will want to find out is if you’re eligible.
- Have you suffered a hardship? This can mean divorce, unemployment, death, etc..
- Do you owe more than the house is worth?
- Impossible for you to modify your current loan
- You cannot afford to pay your mortgage.
If you qualify you may be required to submit some or all of the following documents.
- A letter of authorization allowing your lender to communicate with the bank.
- HUD-1 or preliminary net sheet
- Completed financial statement
- Seller’s hardship letter
- 2 years of tax returns
- 2 years of W-2s
- Current check stubs
- Previous 2 months of bank statements
- Comparative market analysis or list of recent comparable sales
If you’re lender finds that you are eligible and you move ahead with the process you would want to find a realtor who specializes in short sales. They will help you find the current market value of your home and expedite the entire process. They can save you a lot of time and wasted energy.
If you are the buyer:
- Learn to be patient!
- Hire a realtor that specializes in short sales.
- Keep searching for other houses because short sales can be unpredictable.
- Remember that you are essentially buying the property from a bank. They can be unpredictable.