The length of time it takes a lender to provide answers is a common problem stated by those who try to work with short sales. The lenders simply do not handle all of the requests as quickly as needed.

If a buyer has obtained a mortgage commitment for 30 days, it will probably expire before the short sale bank renders a decision. Now the buyer is faced with not only trying to get an extension on the mortgage, but also wondering how much longer they will need.

When the bank renders a payoff figure, it is usually good for a few weeks. If the buyer does not have a mortgage, the payoff figure may expire, causing the process to start all over again.

The larger issue however, is while all parties are working hard to complete this process in an attempt to proceed to the closing, the foreclosure clock is still ticking. It is only a matter of time until the seller is faced with the issue of a foreclosure proceeding.

To assist both my clients and real estate agents who are working with short sale transactions, I have created a guide providing beneficial information about short sales, in depth explanation of documentation required, and sample documents. If you are interested in receiving a copy of this guide, please visit my website and request a copy to be sent to you today!

If you have any questions, concerns or would like more information comment this post, email, or call  (718) 377-7798 to speak with Michael Reinhardt.

DISCLAIMER:

The use of the Internet or this forum for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this forum. This information is for general information only and should not be relied upon without consulting with an attorney.

When doing a Short Sale, the lender will require a short sale package be submitted before any consideration will be given to a request for a Short Sale. The following documents will be requested by the lender:

1. Authorization letter for the lender to speak with a real estate agent, attorney, or other third party.
2. Estimated Net Sheet; an estimate of what the lender can expect to receive from the sale after the expenses.
3. Appraisal of the Property (also known as the Broker Price Opinion – BPO).
4. Hardship Letter indicating why the owner cannot make the payments. Supporting documents such as medical bills, bank statements, pay stubs, etc., should be included.
5. Estimate of any repairs that may be needed.
6. Asset and liability worksheet should be filled out to determine financial inability to re-pay.
7. A Contract of Sale executed by the Purchaser.
8. Payoffs of other loans, liens or other mortgages on the premises.
9. Any other information that the lender is requesting.

When submitting documents to the lender it is imperative that you submit all documentation in a prompt fashion, as a delay in submitting documents can lead to the lender not approving the short sale.

To assist both my clients and real estate agents who are working with short sale transactions, I have created a guide providing beneficial information about short sales, in depth explanation of documentation required, and sample documents. If you are interested in receiving a copy of this guide, please visit my website and request a copy to be sent to you today!

If you have any questions, concerns or would like more information comment this post, email, or call  (718) 377-7798 to speak with Michael Reinhardt.

DISCLAIMER:

The use of the Internet or this forum for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this forum. This information is for general information only and should not be relied upon without consulting with an attorney.