What The First Step In The Short Sale Process

What's The First Step?

First and foremost, contact your lender. This will aid in future communications by showing your intent to resolve the matter with honesty to satisfy the loan balance on your home to the best of your abilities. Secondly, contact a qualified and experienced REALTOR®. Our team will be an incredible ally in the process, offering guidance and recommendations and ultimately being a key to the success of a short sale.

You should also determine if you will qualify for a short sale by undergoing an analysis of your financial situation.

An example of some of the documentation that is required by the lenders includes, but is certainly not limited to, the following:

Letter of Authorization - Lenders will not disclose your personal information without your authorization to do so. With so many parties involved in a short sale, a letter of authorization will aid in cooperation and information sharing. The authorization letter should include the address of the property, the loan reference number, your contact information, the date, and your real estate agent's name and contact information. This allows the agent to discuss your loan with the lender.

Last Two Years Tax Statements- Copies of these are needed by most lenders to evaluate your financial situation.

Proof of Income - Bank statements, savings accounts, and information regarding investments, cash, and additional real estate you own, should be provided to your lender. Your lender will require full disclosure of your financial situation in order to determine that your debt is worthy of forgiveness. Any document or evidence you can provide-from receipts for pawned merchandise, diverse papers, copies of any late bills, and more-can be taken into consideration.
Comparative Market Analysis (CMA) - When markets decline and property values fall it often affects your ability to sell your home at a price that will satisfy the total loan amount. Proving this information to a lender through a CMA report prepared by your real estate agent, will show the price of homes similar to yours that are currently on the market, are pending sale, or have been sold in the last six months. Again, a REALTOR® will be a valuable partner in providing you this information.

Hardship Letter - This is a hand written letter by you to your lender explaining the reasons leading up to your default on the loan.

We will assist you in exactly what you need to provide based on your lender's requirements. Contact us at any time!