steve's White Mountain Blog


New Hampshire ski resort short sale expert providing service to sellers and value to buyers

Sellers be prepared to supply the following to your lender;

A complete financial statement, with account balances and a list of other assets.

A hardship letter detailing your need for loan modification.

Supply any additional hardship circumstances, death certificate of spouse (if applicable) and or employment status.

Request any forms the lender requires to speak directly to your real estate broker, and authorize release of all pay off statements to the broker. Including account numbers and contact persons assigned to the file.

Gather and share any property taxes, home owners dues, second liens, or attachments on the property with your broker as well as the first mortgage holder.

Request from your real estate professional any additional fees that come with transfer of real estate in your town, county or state.

Your Broker will communicate with the lender and will be asked to supply the following:

A broker opinion of current market value (BPO) many times this is requested from another broker or even an appraiser to have a second opinion.

A (proposed) HUD settlement statement detailing the cost associated with the anticipated sale of the subject property. This is a crucial element, things like transfer tax, recording fees, HOA fees and commissions must be detailed for your lender to accept them as a cost associated with the sale.

When an offer is made the additional paper work supplied to the lender will be: sale contract (with the sale subject to lender approval), addendum's to the contract, required inspections and any financing contingencies of the sale.

And typically a new proposed HUD with updated prorations and contract sales price applied to the figures.

Buyers be prepared to supply the following items for a short sale.

Evidence of available funds (if it's a cash offer)

Pre-approved lenders letter indicating you have financing in place for the purchase.

And Patience, is needed in any of these transactions, if you have to close on a property with in 30 days you may want to seriously consider looking at regular re-sales or new construction with out lender issues.

I have three sales currently in the short sale arena each has some special circumstances involved with the seller.


Three Short Sale Examples


1) One sale was listed as a traditional listing with the seller prepared to bring money to closing to pay off what ever was short. The husband died prior to writing a purchase agreement, the wife didn't have the money to pay off due to complicated partnership agreements with her husbands business. This Short sale was started after the sales contract was signed and it is likely to be 4 months from start to finish.

2) Another sale, the seller had a principal pay off in hand at the time of listing and was sure the sales contract he signed was going to get him out free and clear at closing with no additional money being due at closing. It turns out he had refinanced with in the last two years and had taken out a reverse mortgage, he had a very large penalty due if the property was sold in the first few years. But due to a necessary cross country move that is what we were dealing with. This will likely take two months to unravel before the sale can be completed.

3) On the last sale,(per my instructions) the seller approached the lender's loss mitigation department with an unemployment and negative equity issue prior to marketing the property and we are on tract to close in less than 30 days. All the necessary documents were completed prior to an offer being made.

Sellers' do your due diligence prior to accepting an offer, We know this is a difficult situation for you we are here to help smooth the way to a sales that is as painless as is possible under the circumstances.

Buyers' do your due diligence have cash in hand or an approved letter of finance prior to making your offer and if you will be frustrated that the sale is not going to close on your terms, this type of transaction my not be for you.


The Above examples only begin to scratch the surface of the complicated nature of seller/ lender & buyer issues you will face in a short sale deal.


Brokers, do your leg work prior to taking one of these listings. If you are not prepared to babysit a sale every day for several months, then let someone else that is willing to, to take this listing.  / 800-926-5653

This blog is not intended to be a complete check list of all the items you may face when dealing with a short sale but the main items to be prepared for are high-lighted.







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Comment balloon 4 commentsSteve Loynd • June 30 2009 09:46AM
New Hampshire ski resort short sale expert providing service to…
Sellers be prepared to supply the following to your lender; A complete financial statement, with account balances and a list of other assets. A hardship letter detailing your need for loan modification. Supply any additional… more