Short Sale Tip of the Month

Short Sale Tip of the Month

This may seem like ShortSale101. So, no offense to the veterans among us. But, one of the number one reasons a short sale is denied or a short sale file is closed is due to a short sale package that is incomplete or one that includes out-dated paperwork.

A complete package means:

• You are using the most current lender specific short sale package.
• You submit everything requested on the lender’s document checklist.
• If a seller cannot supply any of the requested items, you MUST send a separate statement for each item that is signed and dated by the seller and includes a detailed explanation about the items absence.
• All items must be the MOST RECENT.
• All financial statements and hardship letters MUST be signed and dated.
• The hardship must be fully and understandably explained.

Some ideas:

• Clearly LABLE EACH ITEM when submitting the package to the lender.
• Consider having the seller officially file a tax extension if they have not yet com-pleted this years tax returns. The extension will be better received by the lender than a written statement explaining why taxes have not been filed.
• Have the seller submit any unemployment statements or other benefit or subsidy statements in lieu of pay-stubs.
• If a seller is self-employed, have them supply their most recent quarterly profit-n-loss statements. If they do not use an accountant or accounting program, then have them submit a detailed explanation of expenses with an itemized account of receivables for the last 3 months.