8 Items Needed in a Short Sale Packet - How to Short Sale a Kansas City Home

8 Items Needed in a Short Sale Packet - How to Short Sale a Home

A short sale in real estate is not always a pleasant transaction. There will be ups and downs. Just keep in mind that a homeowner needs to be patient.

Losing a home to foreclosure destroys credit, embarrasses the family and strips an homeowner of dignity. For homeowners who can no longer afford to keep paying their mortgage payments and have tried other remedies of preventing foreclosure an alternative is requesting the mortgage lender to agree to a short sale. A homeowner who completes a short sale typically avoids bankruptcy and obviously avoids a foreclosure, two major killers on credit reports.

The short sale process is getting much easier and with some mortgage lenders is getting very automatic with programs like Equator.

When mortgage lenders agree to a short sale, it means that the mortgage lender is accepting less than the amount due. Not all mortgage lenders will accept a short sale, if it makes more financial sense for the mortgage lender to foreclose.

At the beginning of the short sale process, the mortgage lender will be determining if the homeowner and the property qualify. The mortgage lender determines if the homeowner and property qualify by reviewing the “Request for Short Sale Paperwork”. Some mortgage lenders will have there own short sale request forms. If not, follow this basic guide.

The “Request for Short Sale Paperwork” will have:

1. Letter of Authorization – The homeowner will complete a authorization form allowing the short sale specialist to represent the homeowner.
2. Hardship Letter – The homeowner will write a brief letter explaining the hardship they have had.
3. Financials – The mortgage lender will want to review the homeowner's financials. In addition, the mortgage lender will want to review proof of the financials such as proof of income, bank statements & pay stubs. Provide proof of statements made on the financials.
4. Market Analysis – The mortgage lender will want to review an analysis of what the property is worth at the current time. Typically the short sale negotiator will provide a detailed real estate analysis.
5. Explanation Letter – The short sale negotiator will explain what the homeowner is requesting and why this will make sense to the mortgage lender to request a short sale versus foreclosing. The short sale negotiator will most likely provide supporting docs like repair estimates, showing agent feedback, marketing and a market history of the property.
6. HUD – the mortgage lender will want to review a preliminary HUD settlement statement with the terms of the real estate contract.
7. Sales Contract – The mortgage lender will want to review the sales contract.
8. Listing Agreement - The mortgage lender will want to review the listing agreement.

All homeowners thinking about a short sale should review the reasons why a short sale gets denied by a mortgage lender. This report can be viewed at http://StopForeclosure.DowellTaggart.com

Need help preventing a real estate foreclosure, contact the Dowell Taggart Team at (913) 712-9313.

We have helped homeowners in many of the cities in the Kansas City Metropolitan area including: Gardner, Olathe, Edgerton, Spring Hill, Overland Park, Leawood, Lenexa, Prairie Village, Shawnee, Mission, Basehor, Lansing, Leavenworth, Platte City, Gladstone, Liberty, Lee's Summit, Pleasant Hill, Raymore, Gardnview, Belton, Raytown and Kansas city.

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Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty 

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