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Short Sale Paperwork

Date: Thu, 07/02/2009 - 07:23
Submitted by ball_mich on Thu, 07/02/2009 - 07:23
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Has anyone been successful in dealing with the mortgage lender(s) to get approval for a short sale, WITHOUT providing them with income verification, monthly budget, tax returns, and bank statements?

Seems to me that this stuff shouldn't be necessary, but I can't get Wells Fargo to budge at all on this.


The seller...

I'm sure the buyer needs to document their income, etc, to qualify for a loan. But to get approval to short sell my home, my lender wants me to document my financial situation, including pay stubs, tax returns and copies of bank statements. Personally, I'd rather just let it foreclose, if that's what it takes to do a short sale.


Submitted by ball_mich on Thu, 07/02/2009 - 09:48

ball_mich

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Quote:

Be careful with a short sale. The difference between what you owe on the mortgage and what you sell for becomes taxable income for you. Don't get involved


I talked to my CPA regarding any taxation differences between a foreclosure and a shortsale, and I have a $75 invoice from him for the 20 minutes we talked, to prove it!

His response, and he's very conservative and has been in practice for a long time, is that there is no difference from a taxation perspective.

But everyone should consult their own tax expert and not go by what mine has stated.


Submitted by ball_mich on Mon, 07/06/2009 - 12:25

ball_mich

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Quote:

I'm just surprised that the lender is asking for the seller's financial info...I guess they're looking to see if you're trying to sell it b/c you really ARE in a financial bind or if you're just trying to get out from under even if you can afford it!

Interesting....


The more I research, it is becoming apparent that it is standard practice to require this information from a home owner to get approval for a short sale.

But I disagree with the practice. While I do think there needs to be some guidelines in place to prevent people from abusing the system, eventually common sense should be employed. The bank can recoup more money if they allow me to short sell the property, without income/asset verification, than they can in a foreclosure. And ultimately thats what they should be concerned with, maximizing the amount they can get for their collateral.


Submitted by ball_mich on Tue, 07/07/2009 - 15:42

ball_mich

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what is a third party authorization? is it the same form as the authorization to release information. The lender also wants a Listing agreement The homeowner tried to sell it on her own 9 months ago but she never had an agent.


Submitted by on Tue, 07/14/2009 - 13:17

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Yes,But you must consider the following

Wait until you have received at least one offer on the home

Please do not copy and paste information from other websites, there are copywright laws regarding this practice. If you want to contribute helpful information, use your own words or provide a deactivated link where the source of information was obtained. Shazzers


Submitted by ARUN on Tue, 07/14/2009 - 19:00

ARUN

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