short sale tool
I assume that you already talked with the bank and initiated the short sale process. As a result, you have been sent the short sale package. If you ask, it can be faxed to you as well. You also have secured a buyer and have had the contract signed. The buyer (a local real estate investor) has sent you his prove of funds (or preapproval letter from his lender). At this point you have everything necessary to prepare the package.
1. Hardship letter. In a few paragraphs describe what happened to you (laid off, unemployment compensation unavailable, work fewer hours etc). There is no wrong way to do it. Just tell your story and be emotional.
2. Proof of income. You have to provide the pay stubs for the last month. If self employed, you can use your tax returns for the last 2 years.
3. Bank statements. Provide the last 2 or 3 statements from all of your accounts. If you do not keep the hard copies, you can use online banking and print it from there. Many people are afraid to do online banking. Then your bank will provide the statements you need.
4. Financial sheet. Usually the lender will provide you with this form. There is nothing special about it. There are self-explanatory fields to be filled out. If not sure, call your lender and they will help you out. If you do not have a special form, on a blank sheet of paper write down your monthly income on the left side and your monthly expenses on the right side. Usually the expenses are much more.
5. Purchase contract and preapproval letter from the buyer’s lender. I assume that you already have those. (Read my article where I cover this topic).
6. Preliminary HUD. The HUD (settlement sheet) shows the lender how much they are going to net. It describes all of the deductions involved at closing (second lien holder, property taxes, doc stamps etc). Find a title company in your area and call them. They will be happy to prepare it for you because they want your business. Never pay for the preliminary HUD. If they want to charge you, then find another title company.
7. Package prepared. Now that all of the paperwork is ready, you have to send it. Most lenders accept it by fax. It is crucial that you write your loan number on each page you send. Also write the page number and the total pages. For example: page 1 of 10. It takes about a week the short sale package to be posted on your account. Keep calling until you make sure it is there. It might get lost – happens very often. Be in control and do not rely on anyone to do your job.
At this point you have a month or two to wait in order a negotiator to be assigned to your case. This is perfect. You have time.
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from Margarita Slavkov – foreclosure solutions expert
http://www.DebtAid101.com
Why You Should Use the Manage My Short Sale Program