Foreclosures Book

proceeds from the sale. If you hire a real estate professional to handle the short sale, they can investigate whether you qualify for the government HAFA program. HAFA might allow you to receive up to $10,000 for relocation assistance at closing. You or your listing agent will send the lender the listing agreement, executed purchase offer, the buyer’s pre-approval letter, and a copy of the earnest money check, as well as proof of funds. Requirements vary from bank to bank, but here are some general guidelines regarding the packet your banker will want you to assemble: ; ; An authorization letter: You’ll need to notify the bank that your agent is entitled to speak with them directly. ; ; Preliminary closing statement: This might be called a preliminary HUD settlement statement or “HUD- 1.” It shows how the money from the sale will be distributed to all participants in the sale, including agent commissions, the buyer’s financing source, payment to cover outstanding liens and taxes, etc. These items reveal the buyer’s ability to purchase and the lender’s potential loss if they approve the short sale with the buyer’s price offer. Of course, the lender will want all closing costs to be paid from proceeds of the sale. ; ; Completed financial statement or Request for Mortgage Assistance (RMA): The RMA is the application you must complete to be considered for a modification to your existing mortgage loan and qualify for assistance. Unlike refinancing, this doesn’t depend on having a good credit score. ; ; Your hardship letter: You must explain to the lender