To have IISS buy your short sale property, you will need to meet the following requirements. First of all, we work only with homeowners who have personal total assets less than their total liabilities. Make a list of your assets including your house, cars, boats, savings accounts, etc. in the asset column, with their current market values, then make another list of what you owe on your house, cars, boats, and credit card unpaid balances, etc. in the liability column, add each list, and if the total assets are less than your total liabilities you are considered “insolvent” by the IRS. *
If insolvent, the sale of your house through a short sale will not be a taxable event. It also means that the lenders will seldom want to seek any deficiency judgements against you. That would not be the case if your assets exceeded your liabilities.
You will also be required to supply a number of documents which become part of the submission package to your mortgage lender(s). At a minimum, they include:
* Authorization to Release Information ~ 1st position lien holder
* Authorization to Release Information ~ 2nd position lien holder (if applicable)
* Explanation of Hardship Letter ~ signed and dated
* Personal Financial Statement ~ signed and dated
* Personal Balance Sheet ~ signed and dated
* Checking and Savings Account Statements (most recent 2 months - include all pages of statements)
* Tax Returns (past 2 years ` include all pages)
* Proof of Borrowers Income (past 2 months pay stubs)
* Listing of all liens against the property (copies if available)
Original documents will be copied and returned to seller
Maintain your Property
Since IISS will most likely want to re-sell your property, you will also be required to keep your home clean and accessible for showing to potential buyers, appraisers, etc., with proper notice of course. This gives you the best chance to have your short sale approved by the lender(s).
If you feel you can meet these requirements and would like to proceed with a short sale, or would like to learn more, please call us, or tab to the Contact Us section and one of our participating real estate professionals will contact you. Remember, the foreclosure clock is ticking!
* Please note....we are not attorneys, CPA's, financial or loan modification consultants, and are not offering financial or legal advice. You should contact an attorney or CPA for professional advice and consultation.
