What I will do to help facilitate a Short Sale?
1. Work with Broker and Client to determine feasibility of a Short Sale. Here are some of the items in that consideration:
- Loan structures. First, second and other subordinate lien holders that need to be addressed.
- Specific Lenders involved and their typical tendencies.
- Should you continue to make payments?
- HOA dues and Property Taxes outstanding.
- IRS and other liens.
- HOA law suits and special assessments
- Foreclosure vs Short sale considerations
- Deficiencies and potential collections implications
- Foreclosure time line
2. Advise client of the credit and tax ramifications of Short Sale:
- Credit score implications
- Future home purchase timelines
- Time lines for credit repair
- Tax implications
3. Work with Broker as required to develop a Broker’s Price Opinion (BPO).
4. Prepare a Short Sale vs. Foreclosure analysis.
5. Based on Brokers BPO and the Short Sale vs. Foreclosure analysis, advise Broker on a Short Sale pricing strategy.
6. Work with client to gather the Bank required financial information to include: Bank Statements, Financial Statements, Tax Returns, Pay Stubs and Mortgage Statements.
7. Work with Client to prepare a handwritten hardship letter.
8. Submit the completed Short Sale packet to the Lender(s).
9. Follow up with the Lender(s) to make sure the packet was received and uploaded into the Lenders system.
10. Follow up weekly to facilitate the file being assigned to a Negotiator.
11. Coordinate with Broker and the Lenders appraiser for a Lender ordered appraisal.
12. Negotiate with the lender(s) representative to facilitate the Short Sale. This is a very long labor intensive process which has it’s own instructions.
13. Work with Mortgage Insurance Provider if needed.
14. Negotiate with the Junior lender(s) for the notes to be considered “satisfied”.
15. Follow up and work with the lender(s) as needed until the transaction is closed.