3 Short Sale Tips for Sellers
The short sale process can be a long and winding road that often leaves both buyers and sellers very frustrated. Because there is so much at stake for the average seller who has requested a short sale, it's important to avoid common pitfalls that can derail the short sale and result in a denial and ultimately a foreclosure.
Provide a Complete Short Sale Package to the Lender
Whether you are working with a real estate agent, an attorney, or a short sale negotiator, it's important that your lender get an accurate picture of your financial situation and a true understanding of why you are requesting a short sale. To that end, you must provide your lender with a complete short sale package that includes the following documents:
Communicate with Your Lender
It's important that you remain in contact with your lender. It is not unusual that the short sale department and the foreclosure department to not communicate with one another. Be sure the foreclosure department knows that you are in the process of negotiating a short sale and ask that all foreclosure proceedings be put on hold. I recommend contacting the foreclosure department once a week to make sure that foreclosure proceedings have not been initiated.
Make Full Disclosure to Your Real Estate Agent
Although Georgia law prohibits real estate agents from negotiating short sales, it's important that you make full disclosure regarding any junior liens which may have been filed against the property. If you have a second mortgage, a home equity loan, federal or state tax liens, or judgment liens, action must be taken to clear them or get them released so that the property can be sold. Your real estate agent can assist you in this process or point you in the direction of someone who can.
For more information about short sales, visit http://GeorgiaShortSaleCentral.com.
Provide a Complete Short Sale Package to the Lender
Whether you are working with a real estate agent, an attorney, or a short sale negotiator, it's important that your lender get an accurate picture of your financial situation and a true understanding of why you are requesting a short sale. To that end, you must provide your lender with a complete short sale package that includes the following documents:
- Hardship letter;
- Financial statement which lists all income, assets, debts, and monthly expenses;
- Two most recent pay stubs;
- Two most recent tax returns;
- Two most recent bank statements for all bank accounts;
- Any additional documentation which tends to support your hardship request, such as a death certificate, divorce decree, or pink slip.
Communicate with Your Lender
It's important that you remain in contact with your lender. It is not unusual that the short sale department and the foreclosure department to not communicate with one another. Be sure the foreclosure department knows that you are in the process of negotiating a short sale and ask that all foreclosure proceedings be put on hold. I recommend contacting the foreclosure department once a week to make sure that foreclosure proceedings have not been initiated.
Make Full Disclosure to Your Real Estate Agent
Although Georgia law prohibits real estate agents from negotiating short sales, it's important that you make full disclosure regarding any junior liens which may have been filed against the property. If you have a second mortgage, a home equity loan, federal or state tax liens, or judgment liens, action must be taken to clear them or get them released so that the property can be sold. Your real estate agent can assist you in this process or point you in the direction of someone who can.
For more information about short sales, visit http://GeorgiaShortSaleCentral.com.
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