Documentation Gathering In a Short Sale:

One of the most important as well as cumbersome factors in any short-sale is document gathering. While it is true that a few institutional lienholders have created no document short-sale programs (e.g., consensual short sale), the majority of institutional lienholders require a significant amount of documentation from the borrower (aka seller). This is due in part to the lienholder doing its due diligence by (i) checking to see if the hardship proposed in the hardship letter is genuine and (ii) looking to see if the borrower has any funds available to make up the deficiency. This is not a simple task, and institutional lienholders will often require a significant amount of documentation. That’s why it is important to find out what documentation is required prior to entering into a contract to sell the subject property, so the borrower will have the opportunity to gather the documents (and order new copies if necessary) and submit them shortly after the attorney review period is completed.

While institutional lienholders may differ on what documentation is required, there are certain documents that are pretty standard across the board (e.g., tax returns, bank statements, paystubs, etc). However, all of the documentation the lienholder is looking for must be provided or it can delay the process significantly. Again, as mentioned above, the best way to avoid such a delay is to find out exactly what documentation the institutional lienholder requires as early on in the process as possible, so that such documents can be gathered, and a completed package can be submitted to the said lienholder shortly after the attorney review period has been concluded. For more inform regarding such documentation you will need to contact your institutional lienholder.

* The information in this blog posting is for general information purposes only. Nothing in this blog or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information in this blog is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

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