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Working On First Short Sale

mwt321 profile photo
  • Thursday, December 04, 2003 @ 07:13 AM EST
  • 7 Comments

Ok,
I contacted the mtg company and they've sent over their SS packet. The customer service rep(3rd one I've talked to) say's that the house has to be listed with on the MLS in order for them to consider a short sale. Is this typical?

Here is what they requested via fax yesterday, but it doesn't mention having to be listed on the MLS.

1) Signed Sales Contract
2) Net Sheet
3)Buyer's Pre-Approval Letter
4) Hardship letter
5) Completed Financial Statement(sent in fax)
6)Copies of 2 monthly statements for each bank account
7) Copies of the paycheck stubs for the last 2 pay periods
cool smile Copies of the tax return docs for last 2 years.

I'm assuming that these are all standard for a short sale. I'm just not sure about the realtor and MLS?!

Also, I plan on paying cash for the house if I can work the short sale.
How do the mtg co's. look upon this? Do they care if I'm the one doing the short sale and also the one who buys it?

If anyone can chime in and give advice, I would appreciate it greatly.

Thanks,
Mitch

Comments(7)

  • TheShortSalePro
    TheShortSalePro3rd December, 2003

    As mortgage loan servicing practices come under greater scrutiny, the MLS listing/sale documents will become not simply more commonplace, but an enforcable requirement.

    The participation of a licensed real estate broker serves as an inexpensive check and balance to the process.

    As I suggest in A Short Sale Primer... the real estate broker is your friend in this process, and should be a member of your team. By working with the broker and not around the broker you'll develop a working relationship that will yield more closed transactions.

    I have an affiliated network of brokers that I work with across the country who will facilitate short sales. Since their commission is generally slashed (just about the first HUD1 line item considered) they know it's more work with less pay... so a cooperating, knowledgable broker is a rare commodity. If you need a broker referral for a feasible short sale, I can help.

    Ill-conceived short sale proposals won't be considered for referral since they are an exercise in futility and nobody has time to waste.

  • no photo
    mwt3213rd December, 2003

    Thanks for your reply ShortSalePro!

    Do you know how the mtg co. will look upon me being the one who is doing the ss and also the buyer?

    Thanks in advance,

    Mitch

  • TheShortSalePro
    TheShortSalePro3rd December, 2003

    The Homeowner/Mortgagor will be the one who makes the application for short sale consideration. You can and should assist in their application. You will be the named Purchaser in the Contract, and be asked to provide proof of your ability to complete the short sale (usually within 30 days from their written approval).

    Your role will be to prepare a compelling Proposal that accompanies their application, and prepare to assist in anyway possible.

  • no photo
    BAMZ3rd December, 2003

    Hi Mitch,

    That will not be a problem. I submit all of my Short Sales to the mortgage co, and I am always the buyer. Now as the ShortSalePro said, the homeowner is actually the one who is fillingout out the required financials, hardship letter, etc, but I always am the one who gets everything back to the bank, and follows through with them. Also, if you are buying with cash rather than conventional financing, it lessens the hoops to jump through. Place in your letter of intent to them that you will be paying cash. When I do this, they rarely request proof of the cash to close!

    You will also come across lots of Short Sales that will not require them to be listed for a minimum time period. I like these the best because you can get right down to the nuts and bolts with the mortgage company and start negotiations. If the one your are working on now requires it to be listed, you will have to do that, and after the minimum required time, you can go back to the lender (with an "I told you so"wink, and start negotiations from there.


    Best of Success!

    BAMZ



    _________________
    "Never Buy Anything . . . Unless Someone HAS TO sell!" (Donald Trump)

    [ Edited by BAMZ on Date 12/03/2003 ][ Edited by BAMZ on Date 12/03/2003 ]

  • no photo
    mwt3213rd December, 2003

    Thanks Bamz and ShortSalePro! I really appreciate your expertise and taking the time to answer our questions.

    I don't know if you remember or not, but this is the property that had the contaminated well field and I believe if it's gonna be listed with a broker, then the house will be in forclosure before too long. Also with all the things that are wrong with it, I doubt it'll sell. It's in Tx and the payments are already 2 months behind.

    Also, somewhere in this board, I read about someone requesting a completed HUD1 or a Net sheet to use as an example. Do either of you know where I can get one of these?

    Thanks so much,

    Mitch

  • no photo
    BAMZ3rd December, 2003

    Try this one Mitch!

    http://www.lightning-mortgage.com/HUD1Explained.htm


    BAMZ

  • no photo
    mwt3214th December, 2003

    Thanks Bamz!

    Good link.
    That helps to explain the HUD1.

    Mitch

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