also request copy of purchase contract, pre-approval of buyer's lender, copy of certified escrow instructions and preliminary title report. An estimated net/closing statement certified by an escrow officer must also be sent to the lender. Lender will then approve or disapprove all fees set forth on the net sheet.

Many of today's lenders weren't in business 15 years ago and are not fami

Recently there has been a resurgence of short sales in the real estate market. If you are a listing agent and you have determined your seller is upside down in his mortgage, you may want to suggest the seller contact his lender and request a short sale package. As an agent it is your responsibility to supply the lender with the comparative market analysis on the property.

Short sales in 2007 are different than the 1990's. Property values are not plummeting and interest rates are still viable. The lender will want to see the property listed for fair market value and will obtain their own appraisal to insure it is correct. The lender will want an explanation of the circumstances which created the need for the short pay-off transaction.

Common explanations include: Divorce, medical problems, death, loss of job or job transfer creating need for a move. The purpose of the lender's financial package is: To make sure the reason for the default was unavoidable, involuntary or beyond seller's control. To verify seller has experienced financial hardship. To make sure seller does not earn enough money to pay the deficiency in installments over time, and to make sure seller does not have money to pay some or all of the deficiency in a lump sum.

To verify the financial condition of the seller/borrower, the lender will require: Financial statements showing the seller's assets, liabilities, income and expenses, seller's tax returns for previous 2 years, paycheck stubs for the most recent pay periods. If a buyer has made an offer, the lender may also request copy of purchase contract, pre-approval of buyer's lender, copy of certified escrow instructions and preliminary title report. An estimated net/closing statement certified by an escrow officer must also be sent to the lender. Lender will then approve or disapprove all fees set forth on the net sheet.

Many of today's lenders weren't in business 15 years ago and are not famil

2007 are different than the 1990's. Property values are not plummeting and interest rates are still viable. The lender will want to see the property listed for fair market value and will obtain their own appraisal to insure it is correct. The lender will want an explanation of the circumstances which created the need for the short pay-off transaction.

Common explanations include: Divorce, medical problems, death, loss of job or job transfer creating need for a move. The purpose of the lender's financial package is: To make sure the reason for the default was unavoidable, involuntary or beyond seller's control. To verify seller has experienced financial hardship. To make sure seller does not earn enough money to pay the deficiency in installments over time, and to make sure seller does not have money to pay some or all of the deficiency in a lump sum.

To verify the financial condition of the seller/borrower, the lender will require: Financial statements showing the seller's assets, liabilities, income and expenses, seller's tax returns for previous 2 years, paycheck stubs for the most recent pay periods. If a buyer has made an offer, the lender may also request copy of purchase contract, pre-approval of buyer's lender, copy of certified escrow instructions and preliminary title report. An estimated net/closing statement certified by an escrow officer must also be sent to the lender. Lender will then approve or disapprove all fees set forth on the net sheet.

Many of today's lenders weren't in business 15 years ago and are not fami

vorce, medical problems, death, loss of job or job transfer creating need for a move. The purpose of the lender's financial package is: To make sure the reason for the default was unavoidable, involuntary or beyond seller's control. To verify seller has experienced financial hardship. To make sure seller does not earn enough money to pay the deficiency in installments over time, and to make sure seller does not have money to pay some or all of the deficiency in a lump sum.

To verify the financial condition of the seller/borrower, the lender will require: Financial statements showing the seller's assets, liabilities, income and expenses, seller's tax returns for previous 2 years, paycheck stubs for the most recent pay periods. If a buyer has made an offer, the lender may also request copy of purchase contract, pre-approval of buyer's lender, copy of certified escrow instructions and preliminary title report. An estimated net/closing statement certified by an escrow officer must also be sent to the lender. Lender will then approve or disapprove all fees set forth on the net sheet.

Many of today's lenders weren't in business 15 years ago and are not fami

sure seller does not have money to pay some or all of the deficiency in a lump sum.

To verify the financial condition of the seller/borrower, the lender will require: Financial statements showing the seller's assets, liabilities, income and expenses, seller's tax returns for previous 2 years, paycheck stubs for the most recent pay periods. If a buyer has made an offer, the lender may also request copy of purchase contract, pre-approval of buyer's lender, copy of certified escrow instructions and preliminary title report. An estimated net/closing statement certified by an escrow officer must also be sent to the lender. Lender will then approve or disapprove all fees set forth on the net sheet.

Many of today's lenders weren't in business 15 years ago and are not fami

also request copy of purchase contract, pre-approval of buyer's lender, copy of certified escrow instructions and preliminary title report. An estimated net/closing statement certified by an escrow officer must also be sent to the lender. Lender will then approve or disapprove all fees set forth on the net sheet.

Many of today's lenders weren't in business 15 years ago and are not familiar with short sales. They may take longer in the review process. A short sale transaction must be disclosed as such to any potential buyer. Buyers must be aware the sale is subject to lender's approval of the short sale and the process may take longer. In California, the California Association of Realtors has a Purchase Agreement Addendum which spells out the terms and conditions involved in the short sale. This addendum should be used in all short sale transactions since the verbiage covers all parties in the event the lender does not approve the short sale.

Escrow may be opened without obtaining the lender's approval letter as long as the process has been started. Escrow officers need to be made aware of pending short sales upon opening of escrow so they can quickly gather information for the estimated net sheet for the lender. Closing dates may need to be extended. It is important for all parties to be flexible.

Sellers may negotiate upon requesting a short sale regarding their adverse credit consequences. Lenders may seek a deficiency judgment against the seller for the loss. It is in the lender's best interest to accept a short sale in order to avoid a foreclosure. There are additional charges and attorney's fees in a foreclosure and the lender will more than likely end up with much less for the property.

Lenders may ask agents to reduce their commissions as well as asking service providers to reduce their fees. Keep in mind in 2007, every short sale has its own set of circumstances and each lender has their own set of regu