Three Common Short Sale Obstacles

There are three obstacles that everyone must overcome in a short sale in order to be successful.
Stephen Dunne, Esq.

Stephen Dunne, Esq.

Philadelphia bankruptcy, credit report, and debt collection abuse attorney

There are three obstacles that everyone must overcome in a short sale in order to be successful.
Stephen Dunne, Esq.

Stephen Dunne, Esq.

Philadelphia bankruptcy, credit report, and debt collection abuse attorney

Today is the day.

It’s past time you had someone in your corner.
Our first consultation is always free.

There are several moving parts in a short sale transaction. A motivated seller needs to be organized if they hope to sell their home in a short sale. The best approach in any short sale is to adopt the TEAM mentality (Together Everyone Accomplishes More). A short sale team includes an educated homeowner; motivated realtor; and a methodical short sale attorney.

Obstacle # 1

A homeowner needs to organize their financial documents in order to successfully navigate the stormy seas of a short sale transaction. Homeowners should begin to organize the following documents at soon as possible:

  • Request for Mortgage Assistance
  • IRS Form 4506-T
  • Two (2) years’ Tax Returns
  • Two (2) most recent Pay Stubs (two for each borrower)
  • One (1) Bank Statement (most recent)
  • If Self Employed – P & L Statement
  • If Self Employed – Four (4) months of Business and Personal Bank Statements
  • Proof of Occupancy
  • Copy of most recent property tax bill with a copy of the cancelled checks for all applicable taxes (County, City, School, etc.)
  • Copy of the current insurance declaration page

Obstacle # 2

A realtor needs to organize the following documents in a short sale transaction:

  • Listing Agreement (signed and dated by homeowner/seller and listing agent)
  • Listing Addendum (signed and dated by homeowner and listing agent)
  • Sales/Purchase Contract (signed and dated by homeowner/seller and listing agent, buyer, and the purchase agent)
  • Detailed Listing History (MLS Printout)
  • 3 Comparable Active Listings/3 Comparable Sales/Pictures of the Property and Neighborhood
  • Estimated Settlement Statement HUD-1

Obstacle # 3 

A false expectation that everything will go smoothly with no hiccups.  Realistic expectations are extremely important in a short sale transaction. There are a number of decision makers involved in a short sale that must be in agreement for a home to be sold, i.e. investors, second lien holders, and mortgage insurance companies. It is important to be flexible and adapt to the changing conditions of a short sale transaction.

Let's go over how I can help. Our first chat is on me.

Name*
How do you prefer to be contacted?*
Check all that apply.
What is the best time of day to reach out?*
Check all that apply.
How can I help?
Check any or all that apply.