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Please click
here
if you are a Real Estate Agent or Mortgage Broker
Below you will find all
of the information that we need to process your short sale. At
first blush it seems like a lot. Open each attachment one by one
and you will find that the information needed is not that hard
to provide.
In essence, we need a hardship
letter (on the form we provide)
and your financial documents
along with the retainer for the
law firm and a disclosure form
or two. I have provided forms
and checklists for everything
you need. It should only take
you a couple of hours of
uninterrupted time to sign,
gather and send back to me the
requested information.
Question:
"Who qualifies for a Short
Sale?" Do income and assets play
a role as to whether you
qualify? If you do not qualify
because of income, but do not
have any other assets to sell to
cover the short, will the bank
issue a note?
Answer:
Of
course income and expenses and
assets and liabilities play
into who is qualified to short
sell. You need "hardship" to
qualify
for debt forgiveness attendant
to a short sale. Having
sufficient
income or assets to pay for part
or all of the potential short
fall
lessens the hardship. Remember
there are several different
kinds of short
sales.
1) Seller can bring money to
table to cover shortfall
2) Seller can ask and receive
total debt forgiveness of
shortfall
3) Seller can receive some debt
forgiveness and be held
responsible for some of
shortfall
4) Seller can receive no debt
forgiveness and agree to be
responsible for entire
shortfall.
The level of debt forgiveness or
even willingness of a lender to
do a short sale depends entirely
on assets, liabilities, income
and expenses.
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Can I do a Short Sale? |
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Short Sale Check List |
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Short Sale
Disclaimer Form - Print, fill out form and fax to
The Seymour Law Firm
at 203-924-5520 |
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Hardship
Letter |
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Financial Statement-
Print, fill out form and
fax to
The Seymour Law Firm
at 203-924-5520 |
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Financial Affidavit-
Print, fill out form and
fax to
The Seymour Law Firm
at 203-924-5520 |
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Authorization Form for Seymour Law Firm
- Print, fill out form
and fax to
The Seymour Law Firm
at 203-924-5520 |
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Retainer Form
- Print, fill out form
and fax to
The Seymour Law Firm
at 203-924-5520 |
HOW TO FIND “SHORT SALE”
PROPERTIES AND MAKE
MONEY SELLING THEM
The best way to find
these properties is to
pull the Lis Pendens
from the land records. A
Lis Pendens is filed as
part of every
foreclosure. (It can also
be filed for divorce or
a mechanic’s lien so be
careful to read the
exact type of Lis
Pendens filed). It is
rumored that the
foreclosure houses have
a list of foreclosures
that they distribute to
certain people. If you
have someone in the know
that would be a good way
to get new up to date
information. You can
also find foreclosures
online by using a
foreclosure tracking
service. (these are
somewhat dated). If you
know a Seller’s last
name you can check the
judicial website
www.jud.state.ct.us and
search him by name. If
he is in foreclosure you
will see it. You will
also see if other people
are suing your seller.
This is important
because lawsuits turn
into judgment and
judgments turn into
judgment liens and
judgment liens kill
short sales! (They kill
regular deals too or at
least throw a major
monkey wrench into them!
So keep an eye on the
this site throughout
your transaction).
Special Note:
Checking the judicial
site does not replace
going to the town hall
and gathering all liens
and amounts owed to
clear title
The reason I start you
out looking for
foreclosures is because
many foreclosures are
short. The way to
determine if a
foreclosure is short is
to go to the town hall
and gather ALL liens and
add them up. If they
total more than the
property is worth in
your opinion the
property is probably
short. When you find a
potential short sale
property you will need
to market yourself to
the client. Your must be
careful to only take the
good ones. Many of these
properties and/or
seller’s are not fit or
do not qualify to do a
short sale. It takes a
qualified seller and a
qualified property to do
a short sale. That is
where I come in.
Special Note: A lot of
FSBO’s are short so you
might market to these
people too!
I will help your
prequalify your
potential deals.
Here is what I need to
prequalify a new short
sale for a seller or
buyer you already
represent via listing
agreement or buyer rep.
agreement:
1) Take a look a title
(not the homeowner’s
mortgage statement. Not
running the title down
here will cost you
dearly later!)
2) What is the name and
amount of first
mortgagee
3) What is name and
amount of second
mortgagee
4) What is the name and
amount of any other
liens of record
5) What is the true
value of the property
today in its condition
(must be a defendable
number)
With this basic
information I can submit
any short sale for any
bank in the country for
preapproval and get an
answer within 24-48
hours. Then you agents
can list the property. I
will then speak with the
seller and make sure
short sale is the
correct option and that
the seller and buyer are
in for the long haul. My
office gathers the
documents necessary for
the short sale and we
submit the offer for
approval when it comes
in. It takes on average
about 6-8 weeks to get
approval. With any luck
we have a closing.
When you call or email
(preferred) for us to
look at a deal please
make sure you have done
1-5 above. Ask for Linda
if I am not available.
She will immediately
submit the deal for
prequalification and she
will pass the answer
along as soon as we get
it. We will talk after
that to make sure you
get the property listed
correctly and to make
sure any offer you
receive is structured
correctly.
Sincerely,
Gary L. Seymour
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