Short Sale Tip #2: The Letter of Authorization..commonly referred to as the LOA,
Before you can even begin the short sale process, you will need to be given written authority to do so by the homeowner / borrower. Without having this document you can not even begin your short sale process. Simply put…no LOA..no short sale. It is that important.
Lenders typically do not want to disclose any of the homeowner / borrower information without written authorization to do so.
You will receive better cooperation if you have the homeowner / borrower provide you with written permission to speak to their mortgage lender about their loan.
The LOA should include the following:
a. All Borrower’s should be named
b. All Borrower’s Social Security numbers should be listed
c. Property Address
d. Lender / Creditor Names
e. Loan Numbers
f. Your Name
g. The Date
h. Your Name & Contact Information
Additionally you should name anyone in your office who should or may need to speak to the bank about this file.
Click Here For A Free Downloadable Copy In Our Free Forms & Documents Section
At our seminar workshop we show you how to write a properly formatted LOA and some additional clauses that need to be in the LOA to protect yourself and some clauses that can provide you with an opportunity to explore an additional profit center down the road.
If you are ready to take the next step in your real estate career and want to learn how to profit from foreclosures, make sure you enroll in one of our Short Sale Video Course.You will learn how the foreclosure process works and how you can profit from this growing market. Instead of thinking that the market has turned against you, get educated and learn how to take advantage of this unbelievable opportunity for the educated real estate industry professional.
trying to find out if the authorization to speak to bank is same like the LOA need to download the form but having ahard time. thanks the real estate agent helping me wants me to fax it to her asap…thanks
Hi Gloria..if you want someone to speak to the bank on your behalf, you will need an LOA. You may also want to look for another real estate agent.
Any agent who is doing short sales correctly would have a folder of these in his or her briefcase