If you are considering a short sale personally, you are probably wondering what types of information will be required from you and what a short sale will mean to you. Hopefully this page will help you to find the answers for some of this information.

First, you will need to have the following information available to provide to your lender as part of their consideration to allow you to participate in a short sale. Afterall, you are asking the lender to accept less than you owe them and they will want to know your current financial situation when deciding whether or not to accept your request.

This form is a checklist for that information: 

Click Here for Document Checklist

They will also want to know your monthly income and expenses. This will give them an understanding of why you are needing to ask relief from your current mortgage:

Click Here for Income & Expense Worksheet

Because of the nature of a short sale, there are many aspects of the transaction that are up in the air at the time of the listing and both buyers and sellers need to be made aware of the items that are remaining to be resolved. The following Disclosure covers those items and effectively gives each party notice of those items:

Short Sale Disclosure

Short sales are very complicated transactions and compared to a traditional transaction, beyond finding a buyer who is interested in purchasing the home, the similarities end there. The success rate of your short sale is directly proportional to the skill that your agent has in providing the lender with the information required for the lender to support the decision that a short sale is in the best interest of the lender. Those considerations would include a reasonable price being received for the property, demonstration that the proposed purchaser is a qualified buyer and a circumstance with the borrower that justifies a short sale versus a foreclosure to name a few. To give you an idea of the depth of information required in a short sale, here is a listing checklist of what the agent will be needing to be able to submit a package once a buyer is located:

Listing Checklist

When seeking a short sale approval, it is all about the package that is submitted to the lender to seek approval from the lender for the short sale. This request may represent asking tens or even hundreds of thousands less than the current debt on the property. A common misunderstanding is that the amount of loss is what determines the success of the shortsale. That is simply incorrect. The success of the short sale depends entirely on the quality of the documentation in the package and the demonstation that the short sale terms described within the package represents the best course for the lender to pursue. If it can't be demonstrated to the lender that this is the best solution for them, why would they agree?  

Whether you use my services, an agent that I refer to you or find an agent on your own, I cannot stress enough the importance of choosing the right agent for the job. Ideally you will be able to find a Certified Distress Property Expert (CDPE) as your agent. If not, it is important to use an agent with extensive experience in the short sale process. If you would like me to contact you about the process and discuss it with you further, you may reach me at the following link: Email Michael 

In any event, I wish you the best in this potentially difficult time. Please be assured that if I can be of any assistance to you, I will do what I can to assist you.

Aloha!



Michael Hege' RA, CDPE
Certified Distress Property Expert
Kapolei Realty, Inc.
(808) 225-3660
www.IhateShortSales.com
www.HomesOahuHawaii.com
www.KapoleiToday.com