One of the most common mistakes causing even greater delays than necessary in an already long, drawn out and laborious process is an incomplete Short Sale Package. There are enough things that are out of the control of Buyers, Sellers, and their Agents in a short sale transaction, without giving the lender an excuse to set aside your file and work on one of the 400 others on their desk. Most lenders will tell you the one primary thing that will create delays in the short Sale process is an incomplete package. It is imperative that homeowners who have listed their property with a realtor for a Short Sale transaction compile a complete package of all necessary documents requested by their agent in a timely manner. Getting some or most of the documents together will simply not do. There is a very good article by KELLI HART, THE ORANGE COUNTY REGISTER about this particular Pitfall in the Short Sale process.
This is one of many reasons it is imperative to work with a Listing Agent who is experienced and Specializes in the Short Sale negotiation process. It is always a good idea to check with the short sale lender to make sure you have the latest version of their required Short Sale package to be sure you are not missing anything. Some lenders will provide a list of documents they require. Others have their own forms that must be completed along with a list of documents to be provided. If the loan to be Short Sold is FHA you can find the required HUD docs on the HUD.GOV website, but the lender servicing the loan may have their list of required forms to be added.
My team requests that our Short Sale clients provide all of the required docs for the Short Sale package within a week of listing the property. We want to be sure that everything is in place so that when we receive an offer there is no delay in getting the completed package to the lender. There are numerous items we have learned along the way in the five years we have been specializing in Short sales to make sure our files get the immediate attention we desire. These will be discussed in a future post.