Short sale "package" (foreclose, agent, mortgage, banks)

[VoyagerMan]

What exactly goes into the "package" that is sent to the bank from the sellers attorney?

[VoyagerMan]

After the buyer makes an offer I mean..

[Silverfall]

A Short sale package typically includes
1) a hardship letter stating the reason's they can't pay their mortgage
2) A release from the attorney or seller's real estate agent to discuss the loan and negotiate on the seller's behalf.
3) financial statement
4) last two years of tax returns
5) Last two bank statements
6) last two pay stubs or unemployment letter
7) a copy of the purchase and sale agreement (the offer)

Banks sometimes ask for copies of savings/retirement account info as well. They want a lot of financial documents to verify the hardship.

[Silverfall]

Oops...2b reminded me that I left out the estimated HUD statement. I knew I was forgetting something!

[VoyagerMan]

So when I made my offer, all this was sent? Shouldn't this all have been sent prior to my offer?

[Grannysroost]

Originally Posted by VoyagerMan

So when I made my offer, all this was sent? Shouldn't this all have been sent prior to my offer?

Voyager...I think this is confusing...did you make an offer on a short sale (I think) or are you putting a property you own up for short sale? Just trying to clarify your question... Or do you want to know what the lender has from the seller to base your offer on...I am confused for sure...

[VoyagerMan]

I made an offer on a short sale. I was told that now my offer was put together as a
package and sent To the bank by the sellers realtor.

[Silverfall]

Originally Posted by VoyagerMan

So when I made my offer, all this was sent? Shouldn't this all have been sent prior to my offer?

All of that should have been sent at the time your offer was submitted. Most banks won't look at a short sale packet without an offer.

Think about it...a loss mitigator has 2,000 files sitting on his desk and someone sends over MOST of what he needs in order to determine if the lender will take the short. Do you really expect them to track thousands of half completed files?

They want it all at once. Local lenders are often willing to preapprove a short sale price, but the big guys...all at once.

[chet everett]

I concur with what Silverfall is saying -- too many lenders have a very backwards way of dealing with this mess. Of course they are swimming in a sea of bad loans, and on some level they want to clean up these while trying to not to make the rest of their loans fall off a cliff, but the way they are set up to work through these problems is NOT efficient. They generally want all the same kinds of info that they got when they made the original loan and then they sort of "spin the magic wheel" with an offer and BPO thrown in. Round and round the wheel spins and IF the pointer lands on "SELL TO THIS ONE" bingo the BUYER is told of their "good fortune".

If the wheel lands on "submit more info" "ask for higher price" or "foreclose on this bum and try to sell as REO" the BUYER has wasted A LOT of valuable house hunting time.

Very very frustrating.

Meanwhile the SELLER is sweating every second, not sure where the process will end.

Not good at all...