If your property is located in San Diego, Orange County, Riverside County or Temecula, McConnin & Company Real Estate can help you short sale your home. We are a members of mulitiple Southern California MLS systems and we have listings in Orange County, Riverside and San Diego. To see our San Diego Listings click here . To set up a phone call or a meeting in our Carlsbad office just fill out the form below and then give us a call. We have negotiated many short sale approvals lately and we will be happy to show them to you upon request.
We use the best techonology to push your listing infomation out to the largest buyer pools. Once we get an offer we ( myself and the Realtors in my brokerage) help you prepare a professional short sale package and negotiate your approval.
If the initial approval does not meet with your needs and goals, we then go into attorney mode and start hitting with our RESPA campaign.
To find out more about our proprietary programs, fill out the form below.
Fannie Mae Short Sale guidelines for loan servicers
Borrower Qualifications
When
you are qualifying the mortgagor, it’s important to review the financial
information on file to determine whether or not the mortgagor has experienced a
verifiable loss of income or increase in living expenses. The following
information is reviewed to make this determination:
CurrentPOI
Proof of Income should not be older than 60 days
for all sources:
Pay stubs: Pay stubs must be legible and
include the mortgagor name or Social Security Number, pay dates, rate, and
deductions.
Profit and Loss:Must be for the last
90 days, signed, and dated by the preparer.
Rental:
Need a signed and dated letter from the renter or a lease agreement
including payment frequency and amount.
Non-Obligor
income:
If the non-obligor is contributing to the household with his income, need
a signed and dated letter stating how much is being contributed monthly
from the non-obligor.
Child Support: Need a copy of
the child support order or letter from the person paying child support
that states the amount and how often it is paid.
Need copies of three months worth of bank statements if direct deposited
from the state disbursement unit.
Social Security:
Need current copy of award letter or if direct deposited.
Reason for
Default – You need a brief explanation
indicating cause of delinquency. Verify the mortgagor had a decrease in
income and/or increase in expenses that caused the delinquency.
This can be a separate letter or on the space provided
on the Financial Worksheet.
Completed
Financial Worksheet: Completed,
signed, and dated by all mortgagors.
This is only necessary if the financial information on
DLQ3 has not been updated in the last 30 days.
Credit Report:Must
be pulled within the last 90 days.
Order
Appraisal
– When the appraisal is completed, you must complete three steps before the
mortgagor(s) are considered for a short sale.
- Qualify the mortgagor
- Qualify the property
- Qualify the sales contract Qualify the Mortgagor
The Liquidation negotiator will…
Calculate all qualifying income.
Verify the expenses on the Financial
Worksheet.
The reason for default is due to a verifiable increase in expenses or
decrease in income.
If the expenses are greater than the
income, proceed with qualifying the property.
If the expenses are less than the income, the mortgagor may qualify for a
retention option. Redirect the file to the FNMA Retention team. Also, if
there is a positive cash flow you may want to ask the borrower to make a
cash contribution or sign a promissory note.
Qualify
the Property
Property
may be occupied or vacant. Most MI insurers request 91% of the “as is”
appraised value; FNMA requires 90% of the “as is” appraised value.
Qualify
the Sales Contract
Sales
Contract
The
Liquidation negotiator will…
Make sure the contract is executed by
all parties.
Counter the offer to the FMV Fair Market
Value (appraised value).
The contract must have a closing date.
Have any “and/or assigned” clauses
removed from the contract.
“And/or assigned” clauses cannot be included in the sales contract. This
clause means they can place the deed in someone’s name other than the
listed buyers which could violate HUD’sArm’s
Length Policy.
Have the contract addendum and listing
addendum signed by all parties.
HUD
1 or Net Sheet
The
Liquidation negotiator will…
Verify all seller closing costs are
normal and customary.
Realtor commissions do not exceed 6
percent of the sales price.(6% if 2 realtors are involved; 3% if 1 realtor
is involved)
Sales price on the HUDI matches the
sales contract.
The net proceeds are at least 90 percent
of the appraised value & 91% for most Mi Co.
Cost
Analysis
The
Liquidation negotiator will…
Verify outstanding foreclosure fees and
cost.
Run the cost analysis (Be sure to
include the outstanding f/c attorney fees & costs & the appraisal
fee). Submit the presale through HSSN to obtain approval on non-delegated
deals. Wait to obtain approval from the investor & Mi Co before
issuing out the approval letter.
Issue
Approval
The
Liquidation negotiator will…
Make sure the Approval letter contains
the following:
The buyer(s) and seller(s) names on it.
The date of the sales contract.
The estimated closing date.
The approved closing costs.
Steps
to Follow Prior to Closing
The
title company or closing attorney will need to provide the estimated final HUD
Housing and Urban Development I for approval.
The
Liquidation negotiator will…
Fax the approved HUD I and Attachment F
back to the closing title company or closing attorney.
Complete Attachment G.
Steps
to Follow After Closing
The
Liquidation negotiator will…
Verify you have received the net
proceeds check, HUDI signed by all parties.
Make sure the proceeds check and the net
amount on the HUDI match or funds wired confirmation.
Make sure the disbursement date on the
HUD1 matches the check date.
Forward the complete file to Settlement
along with the Settlement Checklist.
Removals/Denials
The
mortgagor(s) may be terminated from the Pre Sale program for the following
reasons.
Un-resolvable title issues.
The mortgagor did not market the
property at FMV to obtain an offer.
