Florida Short Sales Require Paperwork
Paperwork Needed for a Short Sale
Don’t be surprised when you hear how much paperwork will be required to short sale your home. It can be overwhelming without someone help you sort through it. Steve and Alma Korshak of Short Sale Facilitators, located in Casselberry, Florida, are ready to help you every step of the way.
A short sale is often the last step before the bank forecloses on your home. Since the short sale represents a loss to the bank, the lender will require that you prove you cannot pay your mortgage. This means lots of paperwork. You may be asked to continue to provide some paperwork every month until the short sale is finished.
What Happens in a Short Sale?
Your lender, the bank you pay your mortgage to, must agree to accept less money for the property than you actually owe them. A short sale requires a buyer for your home. Some people get confused by that. It is not like a foreclosure where the bank takes ownership of your home because you did not pay your mortgage. Even though it is a lot of paperwork for you, the buyer and the lender, the property is actually sold – not just given back to the bank.
How Do I Start a Short Sale?
When you meet with Short Sale Facilitators in their office in Casselberry Florida for the first time, you will be asked why you cannot make your payments. They will want information about your income, your monthly bills and your tax returns, but keep in mind all of this is necessary so they can negotiate with your lender.
At this meeting, you will be told what paperwork is required to before the negotiations can begin. It can be a lot. It is important that you give your short sale processor everything they ask for as quickly as possible.
Short Sale Documents
To get started, you will need some or all of the following paperwork:
- Title Search or Tax records – We will order these records
- Mortgage statement with your bank’s name and your account number
- HOA form – this will contain all the contact information for your Homeowners Association if you have one
- Two months recent bank statements – all pages even if blank
- Two months of pay stubs showing your year-to-date earnings
- Unemployment wage page that shows how much you receive each month
- If on Social Security, a benefit letter that shows how much social security you get a month
- Monthly utility bills for all utilities that you must pay each month
- If you own a business, we need your profit and loss statement, two months of bank statements that show your company name and two years of signed tax returns.
- W-2 forms
- Hardship letter that tells the bank why you can no longer pay your mortgage
- Divorce papers showing the settlement if you gave divorce as a reason in your hardship letter.
- If hardship is due to a death, a death certificate will be needed.
- Form 710, Uniform Borrower Assistance Form
- HAFA RMA form
- IRS form 4506T
How Long will My Short Sale Take?
It can take months. The word ‘short’ in short sale has nothing to do with the time it takes to complete the short sale. It means that the sale price is ‘short’ of the amount owed to the lender.
A strong negotiator will stay on top of your short sale. And it is important that you give them everything they need. If you do not, you run the risk of your short sale getting set aside by the bank while they wait on the paperwork. Some documents may be required every month for as long as the short sale takes. Be patient and know that someone is working to negotiate for you.
What Will a Short Sale Cost Me?
Short Sale Facilitators does not charge a fee to the seller for negotiating a short sale. Any fees are paid at closing, but not by the seller.
There is a lot of paperwork. And it takes a lot of time. That’s why it is so important to have a strong negotiator help you through it. Call Alma Korshak at (321) 397-5505 to schedule a time to talk through your options to short sale your home.