Sacramento Real Estate Views

The First Step To Getting Your Short Sale Approved

Having to sell your home short is hard.  You’re in a tough spot, you may have lost your job, getting divorced, been injured or just have too much debt and can no longer afford the mortgage payment.  This is happening all over the Sacramento region as well as all over our nation.

If you must sell your home short of what you owe, you’ve got to make sure that you get the right agent who knows the process of short sales to help guide you through what it will take to negotiate with your lender to approve the sale and get you on your way as quickly as possible.

The Short Sale Package

The first thing to understand is that there isn’t anything quick about a short sale.  They can take up to 90 to 120 to get approval once offers have come in.  Often times the buyer’s get tired of waiting and proceed on to another home and the possibility of foreclosure is looming.

If you get your package together in advance, it can make a world of difference in the time it takes for your lender to approve you to sell short.  Here’s a sample list of what could be required by your lender:

1.  An Introduction Letter

The introduction letter needs to be brief.  It needs to explain what you’re doing and who the parties are in the short sale.  The loss mitigation officers are extremely busy and don’t have time to go through pages and pages of information when one page will do fine.  There is a specific format that this letter needs to be written in.

2.  A Hardship Letter

The hardship letter will explain the procuring cause as to why you have to sell short.  It will explain every detail of the situation you’re in and provide documentation to the loss mitigation officer for their decision.  It also must be constructed in specific format so that it can be understood.

3.  Supporting Documentation Including Financials

If you lost your job due to injury, we’ll need hospital records of some sort.  If you’re going through a divorce, we’ll need court documents.  Whatever the reason is for your having to sell short must be documented.

Your financial profile both when you purchased the property as well as your current financial profile may also be needed.  Pay stubs, tax returns and bank statements may also be required to be included in the short sale package.

4.  Listing Agreement

This will be supplied by your agent and a copy of it should be sent to the loss mitigation officer.

5.  Broker Price Opinion

This is a report of the comparable sales in the area that most closely represent the home of the borrower.  This substantiates the listing price of the home.

6. Copies of Purchase Agreements

The highest and best offers, probably no more than two depending on the lender, are sent along in the package.

7.  The Estimated Seller’s Net Sheet

Once offers have been received, escrow should be opened by your agent and the escrow company (aka title company) will provide your agent with an estimated proceeds from the sale of the offers submitted.

This is a sample of what could be required in your short sale package.  It’s a lot and even more when  you add the emotional stress to the process.

If you need help selling  your home and you need to sell it short, please give us a call, we can help you get this together quickly.

Thanks for visiting!

Related posts:

1. Is It Available or Not!?
2. Rocklin Short Sale Statistics
3. Short Sales Becoming Preferred To Foreclosure

Tags: short sales rocklin roseville sacramento

This entry was posted on Monday, June 1st, 2009 at 5:23 pm and is filed under Short Sale Information. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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