Short Sale Tip # 5: Homeowner Financial Package
February 24, 2008
Short Sale Tip # 5: Homeowner Financial Package
Now that you are asking for a reduction in their payoff, and after you have submitted a real tear-jerker of a Hardship Letter, the bank wants to see how the hardship has truly affected the homeowner financially.
The homeowner needs to provide you with the following information:
- last 2 years W-2
- current financial / balance statement
- last 3-4 months bank statements
- last 2 years of tax returns
- last 4 pay period pay stubs
- a copy of a statement of all 401k or retirement accounts
The homeowner financial information is important because the mortgage lender will want to see a snapshot of the borrower’s current financial situation. The bank statements and financial statements must show that the borrower is in a dire situation that is not likely to change.
Also by getting this information from the homeowner early in the process you will be able to determine if they are going to be able to comply. If they can’t and something smells fishy at least you will know about it early on.
After all, when Mr. Homeowner applied for his mortgage he gave the bank what was assumed to be a realistic and somewhat verifiable assessment of his financial health when he received the mortgage.
However..be extremely careful….if the foreclosure is within 2 years of receiving a mortgage or refinance, make sure the before and after pictures are somewhat related.
Bank Fraud is rampant and submitting these documents could open a can of worms if either the before or after information is not explainable.
At our seminar, we show you how to properly compile and present the homeowner’s financial information package. We’ll also show you how to properly submit the necessary financial information from the borrower / homeowner to illustrate to the bank that your client is worthy of a short sale and that it is in the best interest of the bank to accept the proposal.
Click Here For A Free Downloadable Copy In Our Free Forms & Documents Section
Included is an example of a hardship letter and other documents that are a part of the overall short sale package.
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