(photo courtesy SW Orlando Real Estate Scoop )

When it comes to foreclosures, bank owned (REO) and Short sales , ‘Short Sales’ are probably the most difficult to facilitate a successful transaction for both buyers and sellers.

These days, the seller is usually cooperative. Unfortunately, that is just the small first step towards a close of escrow as you still have to get the bank / lender to agree to the ‘Short Sale‘; and that is no easy task. (I wrote about why short-sales are getting difficult in previous article.)

As a seller, you must be able to prove your income will not be sufficient to pay your mortgage and that you have no other assets on which to draw upon to pay.

here are your must have items in order to receive an approval for your short-sale from your bank as fast as possible.

1. Hardship Letter – bank will want to know why you can no longer afford to make your monthly payment; just because your house is worth less from drop in market will not be sufficient.
2. Most recent tax return
3. Last 2 months bank statements
4. last 2 Pay stubs
5. Monthly Expense sheet
6. Asset statement including, IRA, Life Insurance, stocks and Bonds, savings accounts and other home equity lines
7. CMA of property
8. MLS Listing
9. offer/counter-offer if applicable
10. estimated Net sheet – title company can help get this so the bank will know exactly what they will receive from a short sale net of costs/fees/etc..

If you are buying a property is listed as a Short-sale, does not mean it has been approved as a short-sale. Ask the realtor if the bank has acdepted the short sale. If not, be patient, approximately 60-90 days until you have an answer; which may not be yes!

In fact, John Barker noted that Inside Mortgage Finance reported … that approximately 20% of all homes sales closed in March were short sales. However,

They also said that the number of short sales would have been dramatically higher except for the fact that they estimate about

1 of every 3 “short sales” never close.

Jeff Dowler of Carlsbad Real Estate offers a lot of pertinent information if you are Buying a Short Sale .

If you are attempting to sell your property as a Short-Sale, listen to Joe Manausa and get some good short sale advice and interview a real estate short sale expert who has had success in this type of transaction and can assist you with your package.

Finally, and most importantly, speak with a Tax expert and/or attorney as their are significant tax and legal issues and ramifications that you need to be aware.

If you would like to learn more about legal, tax, debt and credit implications of short-sales; please contact any of these attorneys

Robert Bass , Phoenix, AZ

Nyles Courchesne , attorney, MA

Richard Zaretsky Esq. , FL

Nathan Fransen, attorney, CA

Kevin O’Keefe , Seattle, WA

Jordan E. Bublick, Bankruptcy Attorney , Miami

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Copyright © 2008 By James Wexler, All Rights Reserved. *10 Must Have Docs to get Short Sale approval*

Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs