In one of our recent blog posts, we laid out part one of our short sale roadmap (which, of course, emphasized the importance of working with a La Quinta short sale expert). If you followed the first part of our guidelines, now you should be ready to continue with the process. Read on for some more steps to take to make your prospects of completing a short sale transaction a reality.
1. Research all mortgages and liens on the property. You need to make sure the seller has given you all the information regarding any liens on the property and determine which lender is the primary lien holder.
2. Plan your financing. How you are going to pay for the property is one of the most important things to determine. As your La Quinta short sale expert will tell you, you need to be able to move fast with a short sale transaction as most lenders require closing as quickly as 20 days—so get all your ducks in a row. If you have good credit, the existing primary lienholder may be willing to give you a loan and even expedite the application process.
3. Contact the lender. Once you find a property that you’re interested in, you or the real estate professional you’re working with should contact the loss mitigation department or the resource recovery department of the mortgage bank and find the decision-maker. You’ll need to get a notarized letter from the owner that authorizes the lender to discuss the mortgage with you.
4. Complete the application. Once you speak with the lender, you will need to fill out their short-sale application.
5. Put the proposal together. Next you’ll need to put the proposal together, based on the lender’s guidelines. This typically consists of the authorization letter, completed application and a variety of other financial information.
image: iliveinthebayarea.com