HOW TO GET STARTED
(SHORT SALE PACKAGE requirements)
1. The homeowner must call SunTrust Mortgage Short Sale Team at
800.443.1032 Option 3. The Short Sale
Phone Team will review the mortgagor’s financial information and completes
short sale counseling.
2. The mortgagor and his/her real estate agent then assemble a Short
Sale Package that contains:
From the mortgagor:
·
Last two (2) years tax return
·
Two (2) most recent bank statements
·
Third party authorization form (to speak with real
estate agent, attorney, or 3rd party)
·
Completed financial form
·
Two (2) most recent pay stubs
From the real estate
agent:
· Arm’s
Length Transaction document
· HUD-1
· Listing
agreement
· Fully,
executed purchase agreement
3. The mortgagor (or designated
third party) faxes his/her financial information to (telephone number). The real estate agent faxes the complete the
Short Sale package to 804.675.7399, Attn: Setup
DOCUMENTS REQUIRED TO
BEGIN AN APPLICATION
From the mortgagor:
· Fully
executed listing agreement
· Signed
and dated financial worksheet listing all monthly expenses
· Signed
and dated hardship letter (an explanation of why the homeowner is unable to pay
the mortgage)
· Letter
authorizing the real estate access to information on the account (must be dated
and include the last 4 digits of mortgagor’s Social Security Number and signature,
the full account number and property address
SHORT SALE APPROVAL
PROCESS
1. Once all documentation is
received (please refer to the “Short Sale Package” requirements), the short
sale team completes a property valuation (appraisal or BPO per investor
requirements).
2. The short sale file is then assigned to a negotiator on the short
sale team who will review the file including the documentation and the offer.
3. If there is any missing documentations or request for more
information, the short sale negotiator will contact the designated party or
mortgagor.
4. Once all the required
documentation and information is received and in order (refer to “Short Sale
Package” requirements), the short sale negotiator recommends approval to the
investor and/or insurer. If the short
sale offer is acceptable, the negotiator drafts and sends an approval letter to
the borrower(s) and/or designated third party.
The short sale negotiator then works closely with the real estate, title
company, and the mortgagor to establish a final settlement date. The short sale approval is good for up to 45
days.
ADDITIONAL
INFORMATION
·
Short sale approval is good for up to 45 days. If closing does not occur within 45 days,
the entire Short Sale package may need to be resubmitted with updated
information, or the approval process may need to start over.
·
The real estate agent or STM mortgagor/designated third
party should direct their inquiries 1.800.443.1032, Option 3. The Loss Mitigation Team will answer their
questions regarding the status of the account.
The call will be forwarded to the short sale negotiator as appropriate.
·
Real estate agents are generally allowed 5% to 6%
commission based on investor rules. If
dual agency applies, the maximum commission is 5%. Some investors operated on a reduced commission structure and the
actual commission schedule can be confirmed during the introduction call.
·
The short sale must be an “arm’s-length” transaction. The property may not be sold to anyone the
seller has a close personal or business relationship with, including family,
friends, or neighbors.
·
During the discussion with the short sale negotiator,
the following will be addressed:
-Commission
-Fees and costs
-Pricing of the property
-Timeline
-Borrower Contribution
·
In some cases investors and/or Private Mortgage
Insurance (PMI) companies require mortgagor to make cash contribution or sign
an unsecured note for some or all of the difference between the net proceeds
from the sale and the total amount due.
This is communicated as part of the response on a short sale offer.