Download - Short sale pp
By: Nishad Khan, Esq. 907 Outer Road
Suite B Orlando, FL 32814
Letter and documents supporting hardship
Tax Returns Pay Stubs Monthly Expenses Bank Statements Credit Report
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
• 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.