Aloha, If you are facing forclosure, it can be a very difficult time for you and your family; If you are a seller looking into short sale as an alternative to foreclosure from your lender, you need to utilize the help of a professional Realtor who you can trust. "Short sale" is definitely the better way to go if you want to save your credit and avoid a foreclosure. What is a short sale? A short sale is a workout program that allows a borrower to sell the property, even if the proceeds are less than the loan payoff, due to low property value. Upon final approval, a short sale can help homeowners avoid further collection activity or foreclosure action, which can result in adverse credit reporting and possible tax liabilities. How to get started: contact a Realtor and list the property for sale as soon as possible. Homeowner at time of property listing should have the following documents are required to begin the short sale application: signed and dated financial worksheet last 3 months bank statements letter of authorizing the Realtor access to the information on the account with the lender (s) including property address, borrower's last for digit of the SS#, and the full account number for each loan on the property Letter of hardship explaining why the homeowner is unable to continue making payments on the property
Realtor lists the property and once a written offer has been received from a buyer the following additional documents are needed: fully executed listing agreement Net sheet / HUD showing pay off to each lender fully executed purchase contract
buyer's qualification letter or proof of funds if cash offer. The Realtor will have to create a market analysis of the property and include it with the package when faxing to the lender. Once the Realtor representing the seller(s) has all the above items, those documents are then faxed to the lender for the 1st and 2nd mortgage if applicable. The customer service team reviews the documents and assigns a negotiator to the loan. This process can take up to 30 days. The negotiator assigned to the short sale will then start communication with the Realtor and ask for any additional documents if needed. The negotiator will then sent to the investor for approval. This last process can take up to 30 days. Count on the total process taking 60 or more days. If the homeowner received a foreclosure notice, it is important to replay immediately to the Realtor so that it can be addressed with the negotiator of the 1st mortgage to have the date postponed. The date is usually postponed 7 days prior to foreclosure day. The Realtor has to make numerous weekly inquiries to make sure the process is being followed. This is a very labor intensive and time consuming process for the Realtor; once an approval is received from the investor, the sale is usually concluded withing 45 days from that date. If you have any questions regarding the process of the "Short Sale" or want to list your property today, call me at 808-217-0429 I hope this information is helpful. Laure McElwee, Realtor (S)
'Lava Laure'
Sun and Sea Realty, Inc. 75-6547 Naniloa st. Kailua Kona, HI. 96740 808.217.0429
866.404.4789 Fax
LavaLaure@Yahoo.com
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