Short
Sale Systems:
Short Sale Scope of Work
Communication:
You can reach the Short Sale Systems team via
phone, fax, or email. Once a short sale is started the
investor will receive weekly updates via email every
Wednesday to advise you of the status of your file.
Soon you will be able to track your short sale via our
web site. (More information to follow.)
New orders:
For any new short sale that you would like our company
to coordinate you can contact us a few different ways.
You can email, fax, drop off or mail us the paperwork.
Please call us first to advise that it is on its way
so we can watch for it. Once a new order is received
we process that order within 24 hours from the date
of receipt for weekdays. We will process a new order
within 72 hours if it is received over the weekend.
We are unable to accept any short sales that are within
3 weeks of the sheriff sale due to not having enough
time to perform the short sale. If you feel very strongly
that the sheriff sale could be postponed we will discuss
on a case by case basis.
****If the potential short sale is FHA or VA they require
at least 2 weeks prior to the sale to request an extension.
*****
Investors scope of work: Market to
the homeowner, meet with them and present the paperwork.
Have the homeowner fill out all of the paperwork at
the time of your first meeting or go back to pick it
up from them ASAP. Forward all necessary paperwork to
us. Take pictures of problem- hazard issues. Email those
pictures to me or give me hard copies so that we are
able to present those to the bank. The more information
that you are able to get me in a timely basis the easier
and more efficient we can make this whole process.
Investor
Responsibilities:
1. Investor is responsible for all initial
paperwork from the homeowner. These items are to be
collected by the investor and passed to “Short
Sale Systems” Team.
2. Investor is the contact person for the homeowner.
The short sale systems team is not the contact for the
homeowner. The investor is to field all homeowner calls.
3. When Investor is taking pictures while at the residence
the bank requires one picture of the front of the house
showing the address. The rest of the photos should be
up close pictures of “problem areas”. We
want to stress any problems or repairs that are needed
in the house with the lender. Please do not take pictures
of the whole room unless the entire room is a “problem
area”.
4. Coordinate with homeowner for showings for BPO agent,
wholesale buyers, etc.
5. Coordinate with the homeowner any additional documentation
needed for closing or their attendance at closing
6. Coordinate with the Short Sale Systems Team and Attorney,
Mortgage company, title company for closing preparation
7. Attend Closing
Our scope
of work: Once all of the above information
is received, we can begin our process with the bank.
That entire process is done via phone, fax, email and
overnight mail. Once the BPO has been ordered we will
go to the property to meet with the agent to get that
coordinated and work on them to get the price down (if
it is within 30 miles) if it is over 30 miles the investor
is responsible for meeting with the BPO agent to influence
the BPO.
Short
Sale Systems Team Responsibilities:
1. Gather information from Investor required
for the lender
2. Forward lender required paperwork (listing agreement
if needed) to the investor to have those items gathered
from the homeowner.
3. Update investor weekly regarding the progress of
the file
4. Short Sale Systems Team is the contact person for
the Lender. Short sale Systems is the liaison between
the lender and the investor/homeowner.
5. Prepare short sale package and forward to the lender
6. Negotiate with lender
7. Influence the BPO
8. Conclude negotiations with the lender and begin closing
process with the investor
9. Help with Wholesale of the property if that is the
investors exit strategy
10. Coordinate with investor and their attorney, mortgage
company and title company for closing
11. Attend closing
Items
that are Required from Homeowner to Begin the Short
Sale Process (Investors Responsibility):
1.
Mortgage Information Sheet
2. Authorization To Release Information Form
3. Contract
4. Hardship Letter
5. Personal Financial Statement
6. 2 most recent pay stubs
7. 2 most recent bank statements
8. 2 most recent W2’s
9. 2 most recent Tax Returns
10. Short Sale Questions( filled out)
11. Short Sale Disclosure Form
12. Acknowledgement of Homeowner ( that is a CYA for
you)
13. Limited Power of Attorney
14. Property Disclosure Statement ( that is for your
information)
15. Counter Offer Form
16. Lender Required Paperwork (once we provide it to
you)
17. Listing agreement (if required from lender, we will
provide to you)
18. Bill of Sale ( that is for your information)
* All items with the exception of the contract need
to be completely filled out
Items
that are Required from Investor to Begin the Short Sale
Process:
1.
Earnest Money Check in the amount of $1,000- $5,000
made out to Stone Castle Realty ( photo copy)
2. Preapproval Letter
3. Short Sale Retainer Fee ( at the beginning of each
file process) made out to Gina Clifford/Stone Castle
Realty
* Please see the short sale coordination
page for pricing information
Remember
we are unable to move forward and process your short
sale request without the investor furnishing all of
the above required items.
Once we have all
of that information then we can proceed to talk to the
Bank. Until I have most of that information we are unable
to move forward.
Documents:
1. Investor is to sign all paperwork where
it says ”Buyer” that includes initials and
signature on all 3 pages of the contract, disclosures,
etc
2. When filling out a Contract there are items required
to be signed by Seller. Initial the bottom of all 3
pages of the contract, sign the last page and initial
the top of the last page.
3. When filling out a Power of Attorney there are items
required by the county for that document to be enforceable.
Those items are: Pin # or Tax ID #, legal description,
homeowner’s signature as the Grantor, and the
document notarized.
4. When filling out a Deed there are items required
by the county for that document to be enforceable. Those
items are: Pin # or Tax ID #, legal description, homeowner’s
signature as the Grantor, and the document notarized.
* Items change in each county, please check with your
county for clarification.
Offers: Before we proceed we will have
an initial consultation to discuss values, comparables
and we will discuss the best amount to start the bidding
at based on the investors exit strategy. We will agree
upon the investors Minimum and Maximum offers.
We will also discuss if the investor wants to be involved
in the decision making of each bid or if they want to
be hands off until we have come to a successful negotiation.
The investor will not automatically receive copies of
each negotiation with the lender.
Additional Duties: Should the investor
need us to meet with the homeowner to negotiate the
deal and get it under contract, go back to the house
to pick up information, copies of each bid, communicate
with the homeowner on a daily basis, go back to the
house to take pictures etc. Please see the short sale
coordination page and the short sale
products page for pricing.
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