4 Documents Needed For A Florida Short Sale
The following 4 short sale documents are important in the pricing and lender negotiation of your Florida short sale property. Most sellers may be unaware of these documents and how they are used in the short sale process.
1. Mortgage (or Lender) Payoff Statement
The property owner or their agent requests a statement from the lender that details how much money it would take to payoff (or satisfy) the loan. This statement often includes the original mortgage amount, the number of payments remaining and the balance due the lender at payoff.
The payoff statement helps your short sale facilitator understand the balance due on the loan so they can anticipate and negotiate the shortage the lender would experience in a short sale.
A Payoff Statement may also be required for the second mortgage if one exists. Remember, if you have multiple lenders on your property, each one must accept the short sale offer before it can go to closing.
2. Lender Authorization Letter
The lender requires a letter of authorization from the buyer giving permission for a third party to represent the owner/seller to the lender. This allows the short sale facilitator to negotiate with the lender on your behalf. A lender would not normally discuss the details of a loan with anyone other than the owner. This paperwork allows the short sale facilitator to handle the negotiation and the process of a short sale with the lender.
3. Comparative Market Analysis (CMA)
The realtor you hire will complete a CMA that shows how your home compares similar recently sold homes in your area. Sometimes referred to as comps or comparables, this analysis compares things like number of bedrooms, number of bathrooms, age of property, square footage, etc. The realtor uses the CMA set the proper ‘asking price’ for your property.
4. Broker Price Opinion (BPO)
A BPO is similar to a CMA in that it gives an opinion on the value of the property in question. They differ in a few ways. The lender requests a BPO through an independent broker to help determine the marketability of a property. In a short sale, a lender may use a BPO instead of an appraisal to determine the fair market value of the home.
Short Sales are Not Short on Paperwork
There is an immense amount of work done behind the scenes of a short sale. Short Sale Facilitators in Casselberry, Florida are very familiar with the inner workings of the short sale process. The seller receives a checklist that explains the short sale documents they must provide. Then if there is paperwork needed from the listing agent, Short Sale Facilitators works directly with the realtor.
Alma Korshak has processed short sales for over seven years. She understands the documentation and paperwork involved so that’s one less worry for you. This experience is also one of the reasons realtors turn to Alma to handle the lender negotiation when they list a short sale property. Understanding and managing the required short sale documentation is an important piece of lender negotiation and ultimately, lender approval.
If you have questions about how to start a short sale or any of the paperwork or documentation involved, call Short Sale Facilitators. They will schedule a time to meet with you in their office in Casselberry Florida.
Short Sale Facilitators. The Power of Negotiation.