Freedom Mortgage Short Sale Application, Forms And Packages

Finding The Right Agent

There are a very few professionals in the market that properly know how to deal with the short sale process although a short sale is a process that occurs pretty commonly. This is why it is extremely important that you find the right professional for the job. If you don’t know what to do next we’ve got access to a set of elite professionals nationwide. Click here to request a call from a short sale pro or call 888-934-3444. 

Get The Property Listed!

To keep the process running smoothly you will also have to get your property listed for sale by working with an agent so the property gets a fair review. You will not be allowed to just take an offer to the lender. You may be asked for documents such as the MLS Listing and MLS History as a proof that the short sale has been properly listed. You must have completed this process successfully then you can move forward with the process. The first document required to get your short sale going is the listing Agreement.

What is a short sale?

Such a sale in which the offered amount for a property is not enough to clear off all the debt on it is called as a short sale. No lender can review your application until you have an offer on the property. From the offer the lender wants to calculate that hat will be the net amount you will make them once all the closing costs have been deducted. This includes past due taxes, non-recurring closing costs, attorney fees, settlement fees, title fees, and anything else that may apply.

Find The Right Buyer For Your Short Sale

Strong Short Sale Buyers

The most important quality of a buyer is their willingness to wait. A willing to wait buyer is always better than the all cash buyer and buyer with the highest offer in the long run. Your broker needs to interview the potential buyers to make sure they are a good fit. The broker representing the buyer is as important as the buyer.

Previously Approved Freedom Mortgage Short Sale

Sometimes in order to mislead the customer the brokers advertise that their short sale was approved by Freedom Mortgage previously. Even if they had previously approved the short sale and all the terms were met they will still need to make a full review.

Submiting Your Short Sale Package to Freedom Mortgage To Get The Process Going.

What is in the Freedom Mortgage Short Sale Package?

Mostly the documents required are same for every lender. The following is the list of documents which are required: a listing agreement, a purchase agreement, proof of the buyer’s ability to perform such as proof of funds or a prequalification letter from the buyer’s lender. That’s only the beginning. As a short sale seller they require you provide your financial information such as a monthly budget, your tax returns for the last two years along with a 4506t to show the returns were actually filed, pay stubs or proof of income like a profit and loss, bank statements, reason for requiring to do a short sale, and a hardship letter.

Getting The Right Value Goes A Long Way.

The lender will want to know whether you are eligible for a short sale or not and the only way they can do that is by getting a Broker’s Price Opinion (BPO). In most of the cases an agent completes a valuation. The properties which are similar to the property in question are compared by the broker. He/she will compare properties that are currently listed or were sold in previous 3 to 6 months. They consider the homes perceived condition, the size of the living space, the size of the lot, how many stories it has and whether or not it has a pool. They will also consider market conditions and how fast homes are selling in the area. There are many factors they take into consideration.

Short Sale Appraisal Values

The investor whom Freedom Mortgage is representing is already facing a loss so they will need to make a valuation. If an investor wants a deeper review they will get an appraisal which is done by an appraiser. Appraisers have specific licenses that are for valuing properties. Some investors such as Fannie Mae (FNMA) complete two appraisals. The type of value completed varies from lender to lender and investor to investor.

Filing Value Disputes and Variances

Sometimes it does not matter how hard you try the value still returns high and this can happen to both experts and rookies alike. This may happen due to the fact that sometimes the agent is not from the area and compares non comparable properties.

Freedom Mortgage’s Short Sale Time Line Coming To An End.

This is the decision making time for the undersigned as to whether continue your short sale or not and present your file to the investor. There is an auditing process usually before the submission to management and if approved there is often another auditing process the occurs before an approval letter is issued.

Freedom Mortgage Counters Short Sale

This time can also be a time when the undersigned or lender desides to make a counter to your application or either reject it completely. To counter with either of these situations one needs a very special set of skills that can only be achieved from experience. Anyone can get the easy ones done but it’s the difficult transactions that seperates that experts from the wannabees.

Short Sale Escrow.

A short sale escrow is very much similar to the typical escrow. The typical escrow process will start after all the debt holders have given their approval. To insure that all the interest holders in the property have been properly addressed title search mus have been issued by now.

Freedom Mortgage Issues Short Sale Extension

What if the approval letter expires and we have not been able to complete the short sale process? We get this question all the time and honestly, there is not a simple answer to this. It depends on delinquency of the mortgage, whether the value they have expired, and many other details. Consult one of our professionals if you need more time to see what we are able to get approved with Freedom Mortgage’s Management. Results may vary greatly but the best part of our services is we only get paid if the transaction successfully closes (we are gernerally paid from the real estate comissions awarded to the agents involved and paid out of Freedom Mortgage’s net).