Short Sale: Be Prepared

You've made the decision that a short sale will be your best option.  There are things you can do to make sure the road is as smooth as possible.

As a seller, how you choose to perform during the short sale process is key to it's success, and preparation can make the short sale a little easier on you.

As you may know, the bank will ask for items to confirm your financial situation.  This is what most of the banks will require you to provide to start the short sale, so having these items available will keep you from scrambling for them when they ask.

• RMA (Request for Mortgage Assistance):  This form is used by almost all lenders to start the modification or short sale process.  This will include a section that lists your monthly expenses and your monthly income. We can provide you with  a copy of the RMA
• Pay Stubs:  You bank will want to verify the income that you listed on the RMA.  Banks typically ask for 1-2 months of income verification, 1-2 months of your most recent, consecutive pay stubs.  If you are self employed, a copy of your most recent quarter's  P & L statement will be required. 
• Bank Statements:  The bank will require 2 months of bank statements.  They will need 2 of the most recent, consecutive statements, and they need all pages, even the blank ones.  They want the statements to reflect the deposits of the income that you've listed on the RMA.  
• Tax Returns:  2 years of tax returns will be requested.  If you have not filed, or if you have filed an extension, either a letter of explanation or the extension will be needed.
• Utility Bill:  The HAFA $10,000 relocation incentive will be paid to the occupant of the home.  A major utility bill (electric, water or gas) with the occupant's name and address is required to prove occupancy

Keep in mind, the short sale process often requires that updated pay stubs and bank statements be turned in.  While the negotiators review the files, documents often become outdated.  Sending in updated pay stubs and bank statements to us will keep things on track. 

If you have any questions, please give us a call, and if you're ready to start the process, we can walk you though the steps to get started.

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