Phoenix Short Sale Document Requirements
What are they and how do I collect this information so that I can start my Phoenix Arizona short sale process? Glad you asked that question and just so you know, these are very specific documents that are required by the lender and they vary from lender to lender but never fear as Cash Now Homes will elaborate extensively about them so you get the full picture and complete details when it comes to Phoenix Arizona short sale documentation so let’s roll.
Types of Documents:
- They vary from lender to lender as I mentioned above and might I add that this is determined by the investor (I will have to go into exact details about the investor in the upcoming short sales series of articles as my clients want to know about this infamous investor) for the mortgage.
- For some of the documents, there are 3rd party authorization forms to include the listing agreement and the offer agreement/contract as well. Please know that the listing agents may use their own documents if they so wish.
Requirements for Fully Executed Documents:
- All documents must be completed, signed and dated by all parties that are involved as this is a requirement hence the reason that the statement that “all documents must be fully executed” is a complete reality so please be aware otherwise the short sale goes into the proverbial “foreclosure abyss” because there has to be a sense of urgency as the clock towards foreclosure does not stop ticking (you can absolutely hear the annoying tick tock tick tock in your mind) and who needs that mess.
- Make sure that all document pages to include required signatures are included as this is an absolute must and please know that all I’m trying to do is reinforce the minutiae of requirements versus being repetitive and I would rather be safe than sorry when it comes to my clients as their short sales success and peace of mind is the number one priority at Cash Now Homes.
- There will be parts of the documentation that are just not applicable so what you need to do is strike a line through these sections and please be absolutely sure to print “n/a” for anything that is not applicable in order to dot your I’s and cross your t’s and as I’ve mentioned before you truly need to pay attention to details otherwise we will not achieve our objective.
- This next one is a doozy and a huge level of frustration ensues because if the document is not properly executed, it will be delayed as far as the short sale procedure is concerned as the lender will have no choice but to send another request asking you to resubmit a fully completed document. Can you believe this nonsense? Please know that these lenders mean business and they have rules in place that must be followed or else you have to start all over again and folks that is no fun whatsoever when trying to do a short sale in Phoenix.
- Not trying to add more pain to the short sale process but here goes, if a fully executed document which in simple English means that it has to be completed, signed and dated by all required parties is not received by the due date, well you can only guess what happens next folks and you’re right on target, the files may be removed for what is referred to as the short sale review.
Okay George, since you have given me some serious details to ponder, how about an example from a lender that I have heard of? Good question good people of Arizona and I have just the lender (Wells Fargo) for you that you might have some familiarity with so please continue reading as I am about to share the knowledge that Cash Now Homes is known for and feels that it is our responsibility to share this with our clients.
Wells Fargo Required Documents
- Documents stated here are required for a short sale and they vary by the investor, mortgage insurance company to include the type of offer and certain other stipulations.
- The list of documents that I will be talking about is only for a typical short sale so please keep that in mind because this doesn’t indicate ALL of the documents that potentially may be required to actually complete a short sale.
- Least but not last is the fact that even if you turn in all required documents, it will not guarantee that you will be approved for a short sale.
Required Documents from the Listing Agent
- The rule of law (Wells Fargo rules and not stated in jest) is that you will need to turn in a completed short sale application because if you don’t it will delay the process and our clients at Cash Now Homes do not need this headache.
- Please remember that a fully executed to include a current listing agreement needs to be completed, signed and dated by the seller and listing agent.
- There is something known as the fully executed Wells Fargo Listing addendum that needs to be signed and dated by the seller (homeowner) and listing agent.
- You will also need to turn in the fully executed purchase contract which needs to be signed and dated by the seller (homeowner), listing agent, buyer and the purchase agent. Also something you should be aware of as there will be times when the purchase contract has an expiration date and you have to be sure that it has not expired and won’t do so prior to the short sale closing. Furthermore, the best way to avoid this catastrophic event is to simply make sure you introduce and addendum extending the closing as that will be required.
- There is also the estimated net sheet where some items are not allowed by the investor and or mortgage insurance company per their guidelines. Furthermore, this will include a short sale processing fee, home warranty/inspection, pest inspection and of course, a natural hazard disclosures and repairs. How about that folks? Quiet a list and it’s not over yet so keep reading. Lest I forget, we need to state that most investors will limit the seller-paid closing costs to max of three percent (3%) of the actual purchase price.
Now for the documents required from the seller (homeowner)
- You will need the financial worksheet to include all your monthly expenses and it has to be signed and dated within the last sixty (60) days otherwise it will not be valid.
- You will also need a hardship letter which will give you the opportunity to explain why you as the seller (homeowner) are unable to meet the mortgage payment and this also has to be signed and dated within the last sixty (60) days.
- A letter authorizing the listing agent that will grant them (he/she) access to information for the seller (homeowner’s) account. This also must be dated to include the following information from the seller so please see below for needed criteria:
- Your Property Address
- You will need to provide the last 4 digits of your Social Security Number
- Your full mortgage account number is needed
- Last but not least, your signature is needed
- You will also need the last 2 years of your tax returns and they need to be signed and dated by the seller (homeowner)
- You will need your pay stub information for the last thirty (30) days
- You will also need bank statements for the last thirty (30) days as well
Okay folks, this is a good place to stop as the short sale series will continue but as you can see, there is a lot to do in order to comply with the Phoenix Arizona short sale process and like I stated earlier in the article, it is not guaranteed but the idea is to give the seller (homeowner) a fighting chance to achieve their short sale objective from an experienced short sale specialist (Cash Now Homes fills this criteria nicely) so if you ever need assistance and find yourself heading towards foreclosure, please contact us immediately as we are here for you in your time of need and by all means do not delay in reaching out to one of our representatives.
Thank you for reading our blog and please be assured that we truly look forward to continuing to share our wealth of knowledge with our clients and potential clients.
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