Short Sale approvals seem to be declining. Buyers simply cannot hang out long enough to wait for approval from the Lenders these days. Also, Sellers need to be prepared to contribute cash or a promissory note at closing. Lenders are simply not walking away without some type of contribution from the Seller. Patience and persistance is key. Be prepared to call the Lender every 2-3 days, and you may need to fax your short sale package to the Lenders multiple times (4-6 times in some cases).
The Short Sale package should consist of: Hud 1, Buyers Closing Statement, Accepted Offer to Purchase and Agency Disclosures, hardship letter from the Seller, Financial Statement, 2 months bank statements, 2 years tax returns, if self employed, current Profit and Loss Statement.
Current processing times are 30 days to receive the package, 20 days to be assigned to Phase I negotiator, another 15-20 days per negotiator level (sometimes up the Phase III Negotiator), plus 20 day investor review and approval. Keep in mind that at any time, your file could be lost, closed in error, or simply sitting and not being reviewed.
If your file is languishing, you can ask for your file to be expedited. Does this help? Not really, but it makes you feel better, as you are now in”expediated” status.
If you need help, call me.
Jodi Azevedo 415-472-8100 ext 203