Short Sale App Specifics
can anyone help me out with these 2 things: hardship letter and listing agreement.
my short sale package from "fairbanks" - yes the same fairbanks that has a very negative connotation attached to it everywhere - asks for a hardship letter of course and a listing agreement from a broker. i just want to know how long a good hardship letter is, so i don't longwind a response (unless this is what they want) and what goes in it. the owner wants me to write it myself and sign her name (she said she'll vouch for the signature).
second, what is a listing agreement? i don't know who to go to for the whole list of stuff they want from the agent/title company. but, most of it i could get myself. i just don't kno what they mean by a listing agreement.
stuff they want from borrower - hardship letter, pay stubs, bank statement, tax returns.
stuff they want from agent/title company - listing agreement, offer, hud-1, pre-approval letter from proposed buyer, tax statement and multiple listing history with comps.
thanks for any help and sorry if this is nitpicking, but i'd hate to lose time by messing up what i send (since it's my first attempt at a short and i've very uneducated on how to deal with them).
A listing agreement states the relationship of the RE agent to their client. Is there an RE agent involved? If not tell them so . If there is they are wondering what they are obligated to pay the agent ( which is stated in the agreement).
oh ok ... cool. no there's not RE agent, i'm handling this one myself.
hmm, since there's no agent, maybe i don't need a lot of the stuff they want from the agent . always lookin for a quick way out of excess work.
Fairbanks deserves every brick that's thrown at them. But, they are not the worst to deal with- when it comes to short sales.
I'd have the lady write the letter in her own hand. You dictate it. If she misspells like me, so much the better.
If someone tells me to get something I get it. The exception, is if its a big hassle. Like trying to get the tax returns which are usually misplaced or not filed.
The listing agreement may be to your advantage. Go to a flat fee agent. Tell him to get you comps, and the listing sheet, and write the offer.. Show his compensation on the HUD-1 as $1000 or 1%-2% of the short sales price. They wont balk at that amount. Also, tell him that's all you expect from him. Or, more directly, he is to BUD OUT of the negotiations which you should do yourself
ok, that sounds fair. but, just fmi (for my info), what do you think it says to the bank if i just don't get one? like, if i can't find an agent to get it done quick enough - this place is going to sale in december and they need 3 to 4 weeks to process it. of course, i'd ask for a stay to delay the sale while we negotiate.
do they shun any missing info like they say (offer will not be processed unless all info is submitted), or is this just smoke they blow to get all the info from you? may sound like a bit silly, but if somethin holds me up (like tax returns) i'd like to bypass that and submit everything else.
jackman,
i would have the seller write their own letter of hardship. i was told by my local mentor that the letter should be written from their heart and be so good that if you were reading it, you would cry and sympathize for this person.
dunno my .02
[addsig]
Jackman,
Some banks have Short Sales that include a long list of items needed. It depends who is involved in the sale, Fannie/Freddie, FHA, Private Insurance, etc to decide exactly what is required.
Even though a listing agreement is one item that is on their list, it may not be required for the particular situation. You should call back the loss mitigation rep and ask her what is required to have this property reviewed.
If a listing agreement is required by the bank, you will need to get one, whether you are currently working with a realtor or not. That goes for the rest of the required info in the package. Dont send them a partial SS package. If you do, then they will simply place your filed aside until all of the info is received.
Best of Success!
BAMZ
thanks ahab and bamz (again).