Short Sales In Los Angeles, California – What is a short sale package?
Posted by Jenny Durling on Sunday, July 11, 2010 at 3:29:20 PM By Jenny Durling / July 11, 2010 Comment
If you are new to short sales and seek more information, you can read a prior post here to understand what a short sale is. If you already know what a short sale is and wonder if you qualify, read this point about hardships and qualifying for a short sale. Once you have determined that a short sale is the right thing for you, you can start gathering together the information necessary for your agent and your lender.
You should have already contacted your lender about the possibility of a mortgage modification. If that is not a possibility for you, then ask your lender for a short sale package. They will send you some paperwork to fill out along with a list of documents you need to provide. You can do this step on your own, or have your real estate agent request a package for you. In any case, you can begin gathering the information now with this basic outline of what is normally required. This step should be taken care of before you even list your property for sale so that your real estate agent will be able to submit an offer as soon as one is received. The short sale package must be complete and accompany any offer being sent to the lender for consideration. The most important thing to fill out first is the Authorization to Release Information. This document will give your real estate agent the authority to speak with your lender on your behalf. If you have more than one loan, you will need to fill out an authorization for each loan. Your real estate agent will be able to provide you with the Authorization form if one was not provided with the package or you would prefer that yoru agent obtain the short sale package for you. The next step is to write a letter to your bank, but don't mail it. This is the hardship letter that you will use to explain what has happened in your life since you bought the property that is making it impossible for you to continue to make the payments. If you have any paperwork to back up your hardship claims such as medical bills or divorce decree make sure you make copies to include in your package. For hints on what are acceptable hardships, read my post Short Sales In Los Angeles, California - Am I qualified to short sale my Silver Lake home? This is relevant to selling a home anywhere in California. Your bank's short sale package will include a Seller's statement of financial information. Fill this out as completely and accurately as possible. You will need to provide information on your bank accounts, savings/retirement, income, assets, expenses etc. Other items you will need to supply copies of include: • Your W2's for the last two years • The last two months' pay stubs • The last two months bank statements • The last two years tax returns Make copies of these documents and provide them all to your Realtor. Each document should have your name and loan number written neatly at the top. Other items will be added to the short sale package by your real estate agent such as repair estimates, comparable property listings, the listing contract, a page showing the property is listed in the MLS, payoff amounts (if there are multiple lenders) and an estimate of closing costs to be paid for by the bank. Other items may also be included such as termite and physical inspection reports depending on what you and your Realtor have decided to do prior to submitting offers to the bank. Your agent will check the short sale package to make sure there is nothing missing prior to submitting it to the bank. If you are in a tight position and are not sure if you qualify for a short sale in Silver Lake or surrounding areas , please contact me directly at 213-215-4758 and I will go over the specifics of your situation with you and make recommendations on your best course of action. For more information on short sales in Los Angeles County and buying or selling property in Silver Lake, Echo Park, Los Feliz, and surrounding areas, contact me directly at 213-215-4758 or check out LApropertySolutions.com Jenny Durling Broker Associate L.A. Property Solutions 213-215-4758 info@LApropertySolutions.com LApropertySolutions.com Copyright © 2010 By Jenny Durling *All Rights Reserved * Short Sales In Los Angeles, California - What is a short sale package?