Hey I thought you could really use this, it is the very first step in the process of buying/selling a short sale. The Seller of the home MUST get approval from the bank to "consider" a Short Sale. Some "specialists" will tell you that it is already approved prior to having a contract, I can tell you that I have done several and NONE were approved up front for a price, they we approved to take an offer and send it in. Questions you will want to ask:
•· Have you spoken directly to the bank yet?
•· Have you filled out your modification package?
•· Did you send it back to the lender?
•· What is the sale date (which you probably will already know?
•· You will need to have them (assuming listing) get together all of their income documentation
•o Bank statements, 6 months
•o Financial Statement
•o Bank Short Sale Package
•· When you have this information together you will send it to the bank with this authorization so you can take the bull by the horns and not rely on third party information, you are that information.
Then the fun begins:
•· Have Comps run, and get all the pertinent data together to make a highly educated guess at what the BPO will come back in at, it is arguable and not sketched in stone.
•· Take that number and generally the 1st lien will consider 80% +/- the BPO (so I am told).
•· The 2nd mortgage will need, all of the above, plus a contract, HUD1 and proof of what you the agent has done to earn your commission. Remember that you are negotiating with the seller NOT THE BANK... I have seen 1st hand a 2nd mortgage accept 1500.00 on a 260k note!! It is possible, and the agents earned their 3% each.
•· ALSO - if you are the listing agent, communicate with the buyer agent, it is very frustrating to NOT know what is going on, this is avoided with a simple email, text message, Instant Message, telegraph, cell phone call, Pay phone call, note card pigeon... Many Many ways to communicate.
•· What you ask do I do if I have a buyer purchasing a Short Sale?
•o Explain up front the intricacies of purchasing this type of property, that through a little pain comes lots of gains.
•o Ask qualifying questions up front with regards to the above information of the listing agent, find out HOW far in the process they have done. Remember that nobody cares more about your income than you do, so don't let a rookie listing agent cost you an escrow because they took a listing and had no idea what they were doing (we've all seen this).
Hope this helps close some deals, good luck out there!
Copy and paste the information below into Word
Authorization to Release Information
Lender's Phone Number: _______________________________________
Loan/Account Number: _________________________________________
Property Address: ______________________________________________
Legal Description: _____________________________________________
I/we hereby authorize you to release to INSERT NAME and INSERT COMPANY, its
Employees, officers, agents, and assigns, any and all information they may require for the transfer or payoff or settlement of my/our loan/account for the above referenced
property. "Agents" includes all real estate agents, closing agents, attorneys, employees of INSERT NAME and their assistants. You may reproduce this document to acquire
reference from more than one source.
Social Security Number Date of Birth
INSERT NAME, INSERT COMPANY NAME
INSERT COMPANY ADDRESS
Phone: (480) 555-1212 | Mobile: (480) 555-1212 | email@example.com
Ricky Khamis, CMPS
Certified Mortgage Planning Specialist
On Q Financial
1820 E. Ray Road, Suite A-101
Chandler, AZ 85225
For pre-quals, questions about files in progress, pricing or programs:
Crystal Bailly - Personal Business Manager
NMLS 173141 | LO-0911814 | CA-DOC173141
Branch Manager | Corporate Office
Arizona and California CE Instructor
AMERIFIRST FINANCIAL, INC.
1550 E. McKellips Rd, Suite 117
Mesa, AZ 85203
Amerifirst Financial Disclosure- The opinions expressed here are the personal opinions of Ricky Khamis. Content published here is not read or approved by Amerifirst Financial before it is posted and does not necessarily represent the views and opinions of Amerifirst Financial.