housingstorm.com real estate news community

Questions answered to your Elk Grove Short Sales

Millions of struggling homeowners face uncertainty and do not know where to turn or what to do next for their financial future. Despite all attempts to hold on, the foreclosure process can be challenging if not handled correctly. Now more than ever you need to prepare and educate yourself with the right information.

Here are several questions most frequently asked by distressed homeowners -

What kind of information will the bank ask for?

Each bank has their own separate set of forms that they can ask to be filled out. In fact if you have two loans the amount of information can be different between both banks. The types of information that can be asked for as follows:
Signed hardship letter
Copies of last 2-3 paychecks for all owners of the property
Copies of P&L statements if you are self employed
Complete financial form – Each bank has their own standard
Copy of last 2 years Tax Returns
Copy of last 2 or 3 Bank Statements
Copy of Investment Account Statements
Copy of Listing Agreement
Estimated net sheet
Identification of liens on property
Letter of Lender Authorization: for all loans
Our team will guide you through all of the requirements regardless of which bank and which form are required

What should we do with the letters and information we receive from the bank?

Read, review, and get a copy of them to your agent right away DO NOT IGNORE THESE LETTERS. These letters contain different pieces of information and it is critical to review all of them as they may have legal consequences to them. Banks can send you letters in regards to the following:

Loan Modifications – They can modify your loan so that the payment is more affordable for you and your family.
Loan forbearance – This is a temporary adjustment by the bank of the requirement to pay your mortgage. They can do this for reasons such as health, job, or family issues. The amount that you do not pay is generally added to your loan balance or spread out over multiple payments.

Are all short sales the same?

No. It would be great if they were as it would be the process easier for everyone, both homeowners and agents. Any team who has helped both buyers and sellers of short sale properties will tell you that not all short sales are created equal. Failure on short sales occurs because of a variety of things:
Uncooperative banks
Inadequate disclosure by the seller
Poorly prepared buyer
Banks delays
Poor communication by listing agent with bank
Poor package sent by listing agent to bank
Buyers back out
Seller fails to cooperate

How do I choose someone to represent me on a short sale?

The team should have a loss mitigation specialist on their staff which we do employ.
The representatives should be able to tell you up front if they can help you and what they are going to be doing for you
The agent you select must have short sale experience. Ask them how many short sale transactions they have actually closed. If they cannot answer this question to your satisfaction, move on, as this process can be frustrating and confusing even with the help of a specialist.

For information on the options available to distressed homeowners, visit www.ElkGroveShortSale.com. Or call Lori Mode today at (916)230-0371 for a free consultation.

Lori Mode of Keller Williams Realty – Elk Grove
DRE License #00935148