What Goes Into A Successful Short Sale?
A short sale is a complex process and requires patience, persistence and preparation – starting with your choice of real estate representation. In Lynnwood, more and more homeowners are depending on Vince Grant and his team for successful short sale outcomes.
Submitting your offer with the best chance of acceptance requires preparation of a complete short sale package including all the information your lender will require. Getting this right the first time absolutely critical and every lender has a slightly different short sale process. We have worked with many lenders and learned their various systems to help you successfully navigate this very complicated and detailed process. The Grant Team Properties short sale team closes several transactions each month, and we are confident we will be able to help you arrive at a beneficial solution.
Preparing Your Package:
We cannot do it alone -- your cooperation is essential to the process. Depending on your lender, the documentation you will need to supply may include:
- The last two years tax returns, signed
- The past two months’ bank statements, which will have to be updated throughout the entire process so the most current bank statements are on file
- The past two months’ pay stubs for all wage earners, which will also have to be updated throughout the entire process
- A signed and dated hardship letter explaining the reasons for the short sale
- Some lenders may accept a generic financial worksheet outlining monthly expenses (which we will provide to you), and other lenders require this information be supplied on their specific forms (which we will get and supply to you)
- Authorization forms that give us permission to speak to your lender on your behalf (which we will supply to you)
- Specific affidavits for the investors behind the lenders such as Freddie Mac or Fannie Mae (the lenders provide these)
- An IRS Form 4506T form giving the lender access to tax filing information (which we will supply to you)
We also provide a host of other required documentation, including:
- Our signed listing agreement
- A signed purchase and sale contract
- Our buyers’ pre-approval letter or proof of funds
- Comparable sales to validate price
We can also recommend good legal and financial advisors
If you would like someone to consult while making decisions regarding your short sale. As a real estate agent, I am not licensed as a lawyer nor a CPA and cannot advise on those consequences. Except for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007, be aware the I.R.S. could consider debt forgiveness as income, and there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. In some states, this amount is known as a deficiency. A lawyer can determine whether your loan qualifies for a deficiency judgment or claim.