After I get a short sale Contract, how do we inform the bank?
The documents must be submitted to all mortgage holders along with the seller’s financial information. Typically, the Listing Agreement, Purchase and Sale Contract, Proposed HUD 1 Settlement Statement as well as a financial disclosure showing the Seller’s income and expenses, pay stubs, bank statements, tax returns, hardship letter stating why the Seller cannot make the payments, and certain legally required disclosures are submitted to the lender/bank for each loan (if there is second mortgage or third etc). After the short sale documents are submitted to the mortgage holders these entities will process them and assign a representative to the short sale file. This person is often called a "negotiator". The negotiator will review all of the documents submitted for the short sale including the terms of the Contract and the Seller’s financial information. If the lender/bank agrees that the Purchase Price is at or close to the fair market value often the first step of the process is complete and the sale is approved. However, the second step in the approval process is the lender/banks determination as to how to handle the remaining balance between the outstanding loan amount and the sale price.
Contact Tiller Law today to discuss your short sale options with West Palm Beach short sale lawyer and real estate attorney.
Main Office: West Palm Beach Satellite Offices: Stuart Palm Beach Gardens Fort Lauderdale