Colorado Short Sale Process – Lender

Colorado Short Sale Process from the Lender’s perspective

Most seller’s are not familiar with the Colorado short sale process.

They don’t just automatically understand and are not prepared with what will be expected from them in order to proceed with a short sale.

A  licensed, Colorado Short Sale Agent will be prepared to explain the process to  the seller, with integrity, respect and confidentiality.

After carefully going over the details, inclusive of the information required and the time element involved, your Colorado Short Sale agent should find it  a good practice to follow up your meeting with a recap letter to you.

The letter should incorporate everything that was covered, for easy recall.  Below is a sample of an “overview of the process”  letter that would be received by a seller, selling their  primary residence thru the short sale process:

Dear:
I am glad you called me to discuss the short sale process so we can work thru the guidelines together. As a licensed Colorado Short Sale agent,  I will complete a Comprehensive Broker Price Opinion of your property instead of a typical, regular comparative market analysis, since we have agreed that you may be a good candidate for a short sale.

The following information will be required  in order to analyze whether or not a short sale will be considered by your Lender(s):

• A one page hardship letter from you stating what your personal situation is, since you purchased your home that has left you unable to pay the mortgage.
• QWR
• Past two years Tax Returns
• Most current 2 months paycheck stubs
• Self employed? Last 2 months bank statements from your company, current P & L statement and prior annual P & L Statement
• Last 2 months bank statements from all accounts
• Closing documents and Settlement package from when you first purchased the home for review of that documentation for accuracy
• Last mortgage statement for all mortgages on property.
• Your signature is required on the third party authorization form, attached, giving me permission to negotiate on your behalf and to be able to speak to your lender regarding your loan.
• Your signature is required on the listing contract, attached, which will be required by your lender to prove that the home is on the market.
• Your home will be listed at the value arrived at on the comprehensive Broker Opinion of Value – which will be reviewed monthly for any necessary price reductions.
• Lender Financial Statement Form
• Lender disclosure
• The lender will require updated pay check stubs, bank statements monthly so this will be something that we require you send to us automatically each month.
• Once I have all the documents required, your home will be listed on the market within 24 hours. Contact with your lender will be initiated within 48 hours with an upfront request for a postponement of any foreclosure sale date.
• Nothing will be submitted to your lender and no forward movement on the marketing of your home will happen until all documents are received.

This is a brief overview of beginning the process for a Colorado Short Sale. Call or email us if you want further details.