What is a Short Sale Package?
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:
- Authorization letter for the lender to speak with a real estate agent, attorney, or other third party.
- Estimated Net Sheet; an estimate of what the lender can expect to receive from the sale after the expenses.
- Appraisal of the Property (also known as the Broker Price Opinion – BPO).
- Hardship Letter indicating why the owner cannot make the payments. Supporting documents such as medical bills, bank statements, pay stubs, etc., should be included.
- Estimate of any repairs that may be needed.
- Asset and liability worksheet should be filled out to determine financial inability to re-pay.
- A Contract of Sale executed by the Purchaser.
- Payoffs of other loans, liens or other mortgages on the premises.
- 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 callĀ (718) 377-7798 to speak with Michael Reinhardt.
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