What Documents Do I Need for My Santa Maria Short Sale?

Every Lender is Different and there are types of short sales as well.  Some borrowers are eligible for a streamlined short sale that requires virtually no documentation from the borrower.  In a streamlined short sale, the lender simply values the property and says yes or no to the buyer’s offer.  I’ve completed streamlined short sales for Fannie Mae and with Bank of America.  How do you know if you are eligible for a no documentation short sale?  In my experience, most of the time you don’t.  The bank notifies you once you begin the short sale process.  Most other short sales require financial documents from the borrower.  Often borrowers why the banks need all these documents.  In general, they are documenting your financial situation for the investor who is agreeing to take a loss on your loan.  Typically, banks require:

foldersHardship Letter or Affidavit
Financial Statement
Two years tax returns
Two years W-2 forms
(if not self employed)

Year to date profit and loss statement
(if self employed)

IRS 4506-T form
Two months bank statements (checking and saving)
Two months business checking and savings

The financial statement can vary in terms of its form.  Some banks will accept a free form financial statement of monthly income and expenses.  Other banks have their own form (Wells Fargo, Specialized Loan Servicing, and Greentree for example)  And, the Home Affordable Foreclosure Alternatives short sale program (HAFA) has a document called the Request for Modification and Affidavit (RMA) with a Frank Dodd Certification that serves as the financial statement for a HAFA short sale..  This is the same set of documents used when applying for a Home Affordable Modification Program (HAMP) loan modification, so it may look familiar to borrowers who have previously applied for a loan mod.

Before deciding whether a short sale of your home is right for you, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of your Central Coast home and would like a complimentary short sale consultation, please call my office to schedule an in person meeting or a telephone consultation at (805) 878-9879.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She has successfully completed short sales with Bank of America, Wells Fargo, CHASE , GMAC, Seterus, IndyMac, CitiMortgage, Green Tree Servicing, Specialized Loan Servicing,  HomEq Servicing, Wachovia, Coast Hills Federal Credit Union, Select Portfolio Servicing, Fannie Mae, Freddie Mac,  and others.  

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.  Tni LeBlanc and Mint properties are not affiliated or endorsed by any lender.

Copyright ©2013 Tni LeBlanc *What Documents Do I Need for My Santa Maria Short Sale?*

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