Many homeowners of Burbank real estate or Toluca Lake real estate are now faced with very high mortgage payments they can’t afford.  If you are one of these homeowners and are looking to sell your home in a short sale transaction, before you go into foreclosure, there are a few things you should know.

Use a real estate agent who is familiar with the process and who knows what lenders are looking for in order to negotiate a successful short sale.   Also be prepared for the process to take months, the average short sale transaction seems to take an average of 3-4 months, sometimes much longer depending on the lender.  One of the things that helps speed the process along is knowing what information needs to be submitted to your lender.

What to submit:

• W-2 forms or 1099 forms for the last 2 years.
• Federal tax returns for the last 2 years.  (Possibly state tax returns as well).
• The 2 or 3 most recent pay stubs, if any, even if the seller is collecting unemployment or disability.
• Bank Statements for the last 90 days.
• Letter explaining the seller’s unemployment status if applicable.  The seller will have to demonstrate that their unemployment was involuntary on their part.
• Hardship (SAD) letter.  This can be combined with the letter of unemployment but the seller must elaborate on why they are in their current situation of being financially insolvent.  They must demonstrate to the lender that the circumstances which led to their situation were beyond their control.  Typically lenders prefer that this letter be hand-written in the seller’s own words.
• Broker Price Opinion (BPO) on the property.  

These are just some of the many details your agent should be familiar with…..for more information, please call me at 818-795-8474.