It is predicted that 2013 will be the year of the short sale. Making Home Affordable extended the Home Affordable Foreclosure Alternatives through 2013 and Congress has extended the Mortgage Forgiveness Debt Relief Act through the American Taxpayer Relief Act of 2012 until December 31, 2013.This act benefits qualified homeowners who may have otherwise owed taxes on forgiven debt after going through a short sale. Major lending institutions like CHASE, Wells Fargo, and Citibank, have short sale incentives for homeowners experiencing financial difficulty up to $48,000, classified as “moving cost assistance”.

The stars are in alignment to conduct a win-win short sale for the homeowner like never before. Now is the time to implement systems for a successful short sale transaction that will free your mind of unnecessary burdens.

Prior to taking a short sale listing I recommend you review the list of allowable and disallowable fees paid from the seller’s funds at closing. This will allow you the opportunity to properly prepare an estimated HUD-1 with more accuracy prior to listing the property. Those costs as of 2013 are as follows:

In addition to reviewing fees that are allowable and disallowable, ensure that you have collected and/or completed the information below for a true picture of a property’s financial condition, doing so will increase your chances of getting your short sale approved.

Property Information
Information about any additional liens on the home. The homeowner may have this information. Ask the homeowner if he or she has a recent credit report. Alternately, a present owner search would reveal whether there are any additional liens.

• Recent Comparative Market Analysis (CMA)
• Estimates for any necessary repairs to the home
• Most recent property tax bill and proof of payment status
• Proof of homeowner’s insurance coverage

Marki Lemons will be speaking at ERA IBC 2013 in Austin, TX March 21-24, 2013. Register here.