For All Your Real Estate Needs!
Navigation Menu+

How to prepare for a Short Sale before you begin the Sales Process?

Posted on Oct 26, 2012 by in Active Rain | 0 comments

How to prepare for a Short Sale before you begin the Sales Process?

short sale in Los Angeles, CA endre barath

As some of you know, I have written what a Short Sale is from a Seller’s Perspective at the end of August. Just in case you missed it I am enclosing a link to that post (http://actvra.in/GWv ) Now I would like to focus on how to prepare for the Short Sale Process.

short sale in Los Angeles, CA endre barath

The First Step: The Realtor & the Seller should have an extensive, truthful discussion about the Seller’s financial status. Honesty and full disclosure are essential to the successful closing of a short sale transaction.

The Second Step:   The seller & the listing agent need to work together. Now with that said the Seller needs to contact the lender and feel out the Lender how open are they to a Short Pay Off? This is a complex transaction and both Seller & Listing Agent have to work harder to get a successful closing of the transaction.

Keep in mind the Process consists of convincing the Lender to reduce the loan balance and close the transaction. This is not that easy and is very challenging. What you need is good negotiation skill from both the Seller and the Listing Agent.

The Third Step:  This is the hardest part Working with the Lender determine the Lender’s Guidelines. The best thing you can do is anticipate the list of required documents at the begin  be prepared at least with the following:

 

1.       The listing agreement

 

2.        The evidence of financial hardship to the Lender (strong evidence is key)

 

3.       Proof of income or the lack of

 

4.       Two years worth of Tax returns & W-2s

 

5.       Latest personal checking account statement

 

6.       Copies of all past due secured and unsecured debt notices

 

7.       Latest mortgage statement

 

8.       Current Tax bill

This will put you in the right direction to a successful Closing of a Short Sale. There are a lot of other things to consider. Most of all have a skilled and trustworthy Realtor to help you through the difficult challenges of a short sale.

 

If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 or emails me at homes@endrebarath.com or visit one of my websites at http://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations.

 

Submit a Comment

Your email address will not be published. Required fields are marked *