Download - Short sale pp

Transcript

By: Nishad Khan, Esq. 907 Outer Road

Suite B Orlando, FL 32814

[email protected]

Financials Contract Negotiations Closing

Letter and documents supporting hardship

Tax Returns Pay Stubs Monthly Expenses Bank Statements Credit Report

OFFER APPRAISAL SETTLEMENT STATEMENT

Cash Contribution Promissory Note

1099 (Debt Forgiveness) Combination

Documents Executed Funds Disbursed

APPLICATION: 1. Loans Held in

FNMA’s portfolio; 2. Loans that are part of

Mortgage backed Security (MBS) pool that has special servicing options;

3. Loans that are part of a shared-risk MBS pool for which FNMA markets the acquired property;

4. Servicers of these loans;

5. Servicers who participate in HAFA

www.makinghomeaffordable.gov/loan

Principal Residence First Liens before January 2009 Delinquent or imminent default UPB is less than $729,750 Owner Occupied Have not purchased new home within 1 year

Borrowers refusal to pay

Substantial unencumbered assets or cash reserves High Surplus Income

• Pre-Approval of Short Sale Price • Specific time period to complete short sale • Deed-in-Lieu • Only 3 documents to submit • Set funds for Junior Liens • $3,000 in relocation costs • And…….

Fraud

SS fraud occurs in at least 2% of all sales and costs banks $300 million annually.

Widespread Bailouts

Lenders are concerned if SS are approved on a widespread basis, large numbers of people who are underwater will start bailing out.

Incentives

In some cases, servicers are compensated higher for foreclosure than for a short sale.

Mortgage Insurance

In some cases, banks can collect on MI if the property goes through foreclosure as opposed to a short sale.