The document collection phase of this short sale has taken place.
Lindsay and Mark have provided a signed purchase agreement, a Bank of America specific short sale addendum and their hardship letter, which explains how they ended up in this situation.
They have also presented a 4506-T, which authorizes the bank to pull their tax records to verify income, pay stubs for the past two months, bank statements for the past two months and their taxes for the past two years.
The purchaser has provided their proof of funds, to show they can do their part as promised to purchase the home, and a signed disclosure showing they understand their role in the short-sale process.
In addition to these documents, which are meticulously reviewed to make sure that all information is included and accurate and every signature is in place, the bank uses a system called Equator. It's a third-party web application that allows the real estate agent to upload the requested documents into a digital archive for access by the bank. This system also has online forms that must be completed to initiate the short sale as well.
If you are a buyer and find yourself doing a short sale, ask your agent to identify the lender. Certain lenders have a better reputation for completing short sales.
Bank of America will always request the buyer's first five digits of the Social Security number and their date of birth. While this may seem like an odd request, it is used to make sure the buyer is not related to the seller. Selling your home in a short sale to a relative is in violation of the terms of a short sale.
