Flagstar Bank Short Sale Application, Forms And Packages

Finding The Right Agent

Although we see short sales occuring everytime but still a very few professionals in the market are proper experts in it. So for the process to go smoothly it is very important that you find the right person for the job. We have got a great team of professionals ready to help you if you have not been able to figure out what to do next. Click here to request a call from a short sale pro or call 888-934-3444. 

Get The Property Listed!

You will have to work eith an agent to get your property listed to keep the process going smoothly. It is not usually allowed by the lender to just bring an offer to them. 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. If you want to move forwanrd with the process than this process should have been completed properly. The first document required to get your short sale going is the listing Agreement.

What is a short sale?

A typical short sale is like an ordinary sale but in this case the offered amount is not enough to pay off the debts taken against the property. It is not possible for any lender to review your application unless you have an offer on the property. The thing that the lender wants to see from the offer is that what will be the net amount that you are making them after the costs have been deducted from the amount. 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

A best short sale buyer will be the one willing to wait. A buyer willing to wait is in the long rune better than an all cash buyer and the buyer whose offer is more than the others. 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 Flagstar Bank Short Sale

Brokers sometimes advertise to mislead the customers that their previous short sale was approved by Flagstar Bank because even if it was previously approved and all the terms were met they will still need to make a full review.

Submiting Your Short Sale Package to Flagstar Bank To Get The Process Going.

What is in the Flagstar Bank 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.

By getting a Broker’s Price Opinion the lender can know whether you qualify for the short sale or not. In most of the cases an agent completes a valuation. Properties which are are similar in qualities and features are compared by the agent. 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 Flagstar Mortgage is representing is already facing a loss so they will need to make a valuation. Sometimes the investor will need a deeper view in which case they will get an appraisal. 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 a value returns too high no matter how hard you try and meet regularly with the broker but still they compare properties that have nothing in common because they are not from the area and this happens often and to both rookies and experts alike.

Flagstar Bank’s Short Sale Time Line Coming To An End.

The undersigned will make a decision at this time whether to forward your file to the investor or not. In most cases there is an auditing process before submitting the file to management and if approved there is often another auditing process the occurs before an approval letter is issued.

Flagstar Bank Counters Short Sale

This can alo be the time when the undersigned may not like the terms and may issue a counter to your application or may even reject it. A person needs a very unique set of skills to compete with either of these situations that can be gained only by experience. Anyone can get the easy ones done but it’s the difficult transactions that seperates that experts from the wannabees.

Short Sale Escrow.

Escrow of a short sale is just like a typical escrow process once all the lien holders have given their approval than you will be allowed to move forward.A title search is issued before this time to ensure everyone with an interest in the property is dealt with.

Flagstar Bank 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 Flagstar Bank’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 Flagstar Bank’s net).