One of the keys to a successful closing on a short sale in Boise, Idaho  is submitting a complete package to the negotiator for the short sale sellers lender.  Once the lender is contacted you will be assigned a negotiator that will be your direct contact with the lender.  These negotiators are extremely overwhelmed and the more complete and professional your package is the easier it is and quicker the lender will get you submitted for approval.  Each lender has it’s own criteria but most require these fundamental documents prior to approving the short sale. The information requested is extremely personal and specific.  Great care should be taken to provide the seller with security that the information is kept confidential between the parties.

1.  Loan information release form:  This form is signed by the seller of the property allowing the real estate agent authorization to receive information about the loan made to the seller.

2.  Purchase and sales agreement:  The purchase and sales agreement are the terms and conditions that a buyer has agreed to purchase the subject property for less than is owed by the seller.  The purchase and sales agreement should stipulate that it is subject to ‘Third Party’ approval.

3.  Hardship letter:  The Sellers lender will require a hardship letter that explains in detail why the seller is unable to make the payments on the subject property.  As much detail as possible explaining the ‘hardship’ is preferable.  All information is private and must be guarded by the real estate professional and lender.

4.  Loan approval for Buyer:  The sellers lender will require verification that the purchaser of the sellers ‘short sale’ has unconditional loan approval.  The short sale sellers lender want’s the highest certainty that the subject property will close.

5.  Most recent W-2 for seller: Part of the seller’s lender package is request for financial information.  That can include tax information and pay stubs. If seller is an independent business person financials and profit loss statements may be required.

6.  Bank statements:  sellers short sale lender will typically request copies of the sellers bank statements for last 2 months.  The lender wants to see what accounts and reserves are available to the seller.

7.  Listing agreement:  The listing agreement between the seller and the real estate company is required by the sellers lender.  This demonstrates to the sellers lender that the property has been marketed for a certain marketing period.

8.  Estimated proceeds and expenses: The sellers lender will require an estimated HUD-1 closing statement.  The estimated HUD-1 (Housing and Urban Development) closing statement includes the fees that the seller’s lender will pay and any proceeds allowable to any other lien holders behind the sellers first lender.  Any taxes, homeowner’s fees, or expenses will be sent to the sellers lender for approval.

Understanding these steps can greatly enhance your ability to succesfully close a Boise, Idaho short sale.