SHORT SALE ITEMS YOUR MORTGAGE LENDER WILL HELP PAY
(HELP #6)
The lender(s) will usually pay for the following costs associated with the mortgage short sale process:
- Escrow fee (homeowner’s half)
- Owner’s title policy
- Mortgage Recording fee’s
- Short sale reconveyance fee
- Overnight mailing fee for the payoff
- Real estate property taxes and prorations
- Real estate commissions
- HOA dues and fee’s
If the HOA has placed a lien on the property, some mortgage lenders may allow $1,000 to be paid towards this lien to complete the short sale. We will negotiate with the HOA to reduce their fee’s and accept this money as payment in full. We will help remind the HOA they will receive nothing if this home goes to the foreclosure process and is sold at the trustee's sale! The short sale process will help them!
Mortgage lender will NOT HELP pay for the following short sale costs (see NOTE below the list):
- “buyer” closing and mortgage costs
- home warranty
- buyer’s mortgage appraisal
- buyer’s inspection
- any repairs to the short sale
NOTE: as of 2008 short sale process rules have changed. How? Mortgage lenders are now generally willing to help pay for the first two items on this list. Mortgage lenders are now more willing to negotiate details regarding a short sale. The bottom line is: if the mortgage lender wants the property off their books they will negotiate during the short sale process! Ask us how any recent changes can help the short sale process.
HOW WE HANDLE LOSS MITIGATION DEPARTMENTS
(HELP #7)
We will call the Loss Mitigation Department at the mortgage company and ask how long the short sale approval process will take once a complete short sale package is received. We fax all the short sale information discussed above. We include a fax cover page stating "this is a NEW SHORT SALE PACKAGE." We also request that they process an interior BPO, or Broker Price Opinion (this is an advanced form of a comparable market sales report).
The more complete the short sale package, the greater the homeowners chance for success in the process. The Loss Mitigation Department will be more willing to help us. There is only ONE opportunity to impress the mortgage lender with a strong, complete, and well organized short sale package! It's important that we do this process correctly the first time.
Once we have sent in your short sale package there is usually a one week wait (minimum) before calling the mortgage lender to learn which loss mitigation specialist is handling the file. The Loss Mitigation Department at the mortgage lender is busy -- if not highly overworked. Loss mitigators usually each have between 80-300 short sale files on their desk to process at one time. The loss mitigation specialist will be our contact for the duration of the short sale process. Our goal is to help the lenders short sale mitigator to work with us in the process. How? We provide as much short sale information as possible. This will help them with the short sale process and will ultimately help the homeowner. We show the short sale mitigator our expertise by sending them a complete mortgage short sale package and by being organized. We let them know we understand how busy they are with short sales and appreciate the valuable time they are spending to help the homeowner’s short sale process.
COMMON SHORT SALE PROCESS MISTAKES
(HELP #8)
3 common mortgage short sale process mistakes
- Sending in a low-ball short sale offer that we know the mortgage lender will not accept.
- Unfamiliarity with the short sale process. Mortgage lenders are busy and don’t have time to explain the short sale process. We show them how we know the process.
- Not determining the intentions of a second mortgage lender, if one exists. Second mortgage lenders have the right to disapprove the short sale so we work quickly to learn their requirements.
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