Timing for Submitting Short Sale Paperwork

[perkfern]

We are looking to pursue a short sale and wondering whether there is any benefit to submitting a hardship letter and supporting paperwork now, or whether it makes more sense to submit everything once we have an offer on the house? We are getting advice that the bank will not do anything at all until there is a contract offer with a deposit. However, our thought is that perhaps we could at least get the bank to review our hardship and assign a negotiator now, which might expedite the process later on. Thoughts?

Thanks for the input!

[house865]

You have to check with the lender I think to find out the process. Your Realtor should be able to guide you though, but from what I understand they do not consider anything until you have a contract in hand. Make sure your Realtor is very versed in the short sale process as it is a long one and very frustrating. You also can, in the interim call the mortgage company to find out who the investor is on your loan.

[MH_Sucker]

Our lender had a strict way of accepting the short sale package. I doubt it would make the process any faster. We submitted our complete package on March 3rd and we will have to wait 4 to 6 weeks to even be assigned a negotiator!! Good luck

[faith]

Helllo,
I have a successful Short Sale with CW thanks to Moe and Cat and this forum. The lender wants your property to be listed with a Real Estate Agent and it will help you if your agent has experienced with Short Sale. Your house needs to be in the market for at least 90 days. You need to have a buyer that already make an offer in order for your lender to consider approving a Short Sale. You have to submit a hardship letter, copy of your paystubs and the list of your monthly expenses to show that you can no longer afford to pay the mortgage. I put my house on the market in July of 2007, that listing expired, CW did not approve the Short Sale until the 2nd listing with a new agent who has experienced in doing Short Sale. I have many buyers that made an offer and backed out due to CW long process, the investor which is Fannie Mae finally approved the Short Sale and the escrow closed in July of 2008. I am now waiting for Fannie Mae or CW to send me the 1099C but both parties told me to ask the other to give me the 1099C. Lucky enough, I have a letter from the Negotiator when the escrow closed stating that CW and its investors or insurers will not pursue a deficiency judgment against us. He also emailed me how much was the balance forgiven so if I don't get a 1099C I will just attach the email and the letter and give it to the IRS.

It can be done, but you have to have patience, persistent and be strong. Wish you the best.

[chefette]

Faith,
I am glad to hear your short sale success story. I too a going to try for one. I have realtors that are heavily experienced in short sales, so I have the utmost confidence in them. I am interested in what you had to say about the 1099's and forgiven debt. Thank you for posting. Texas