Short Sale Guide For Real Estate Professionals

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A comprehensive guide for working through a Short Sale with SunTrust Mortgaged properties. This is written with a real estate professional as the intended audience but it is good information for anyone considering purchasing a home offered in short sale or considering selling their home on a Short Sale who needs to understand the process.

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  • 1.The SunTrust Mortgage, Inc.Short Sale ProcessA Real Estate Agents guideto helping sellers succeedwith short sales Ricardo Cobos, Sr. Loan Officer919.518.8058 office919.559.3384 cellRicardo.Cobos@suntrust.comsuntrustmortgage.com/rcobos 1 The information contained herein is intended as informational material for the sole and exclusive use of the business entities to which it was distributed and is subject to change without written notice.Equal Housing Lender. SunTrust Mortgage, Inc., 901 Semmes Avenue, Richmond, VA 23224 is licensed by the Department of Corporations under the California Residential Mortgage Lending Act; is an Illinois Residential Mortgage Licensee; is a Lender in Massachusetts having Mortgage Lender license #s ML1216, ML0133, ML1432, ML1914, ML1913, ML1815, ML2411, ML1214, ML2442, ML2491, and ML2538; is licensed by the New Hampshire Banking Department; is licensed by the New Jersey Department of Banking and Insurance, toll free 1-800-330-4684; is a licensed lender in Rhode Island; and is doing business in Arizona as Crestar Mortgage, 7250 N. 16th Street, Ste. 100, Phoenix, AZ 85020. 2010 SunTrust Banks, Inc. SunTrust, SunTrust Mortgage and Live Solid. Bank Solid. are federally registered service marks of SunTrust Banks, Inc.REV 031610FC

2. What is a short sale?A short sale allows homeowners (sellers) who are having difficulty making their monthly mortgage payments to sell their home for less than the total amount owed on the mortgage.Once there is a sales contract on the subject property, SunTrust Mortgage (STM) will work with the seller and the sellers real estate agent to negotiate and close the short sale.2 The information contained herein is intended as informational material for the sole and exclusive use of the business entities to which it was distributed and is subject to change without written notice.Equal Housing Lender. SunTrust Mortgage, Inc., 901 Semmes Avenue, Richmond, VA 23224 is licensed by the Department of Corporations under the California Residential Mortgage Lending Act; is an Illinois Residential Mortgage Licensee; is a Lender in Massachusetts having Mortgage Lender license #s ML1216, ML0133, ML1432, ML1914, ML1913, ML1815, ML2411, ML1214, ML2442, ML2491, and ML2538; is licensed by the New Hampshire Banking Department; is licensed by the New Jersey Department of Banking and Insurance, toll free 1-800-330-4684; is a licensed lender in Rhode Island; and is doing business in Arizona as Crestar Mortgage, 7250 N. 16th Street, Ste. 100, Phoenix, AZ 85020. 2010 SunTrust Banks, Inc. SunTrust, SunTrust Mortgage and Live Solid. Bank Solid. are federally registered service marks of SunTrust Banks, Inc.REV 031610FC 3. Who should consider a short sale? A short sale may help sellers who:Are having difficulty A h i diffi lt making th i monthly mortgage paymentski theirthl tt and do not qualify for other Loss Mitigation remediesWants to avoid foreclosureCan successfully list their home on the real estate market, as opposed to executing a deed-in-lieu transaction 3 The information contained herein is intended as informational material for the sole and exclusive use of the business entities to which it was distributed and is subject to change without written notice.Equal Housing Lender. SunTrust Mortgage, Inc., 901 Semmes Avenue, Richmond, VA 23224 is licensed by the Department of Corporations under the California Residential Mortgage Lending Act; is an Illinois Residential Mortgage Licensee; is a Lender in Massachusetts having Mortgage Lender license #s ML1216, ML0133, ML1432, ML1914, ML1913, ML1815, ML2411, ML1214, ML2442, ML2491, and ML2538; is licensed by the New Hampshire Banking Department; is licensed by the New Jersey Department of Banking and Insurance, toll free 1-800-330-4684; is a licensed lender in Rhode Island; and is doing business in Arizona as Crestar Mortgage, 7250 N. 16th Street, Ste. 100, Phoenix, AZ 85020. 2010 SunTrust Banks, Inc. SunTrust, SunTrust Mortgage and Live Solid. Bank Solid. are federally registered service marks of SunTrust Banks, Inc.REV 031610FC 4. Advantages of a short saleKey advantages include: Avoids the lengthy and often embarrassing l A id th l thd ft bi legal process l involved in foreclosure Generally is less damaging to the sellers credit rating than a foreclosure or a deed in lieu of foreclosure Reduces the amount of the potential loss to the investor Gives the seller some degree of control over his/her situation 4 The information contained herein is intended as informational material for the sole and exclusive use of the business entities to which it was distributed and is subject to change without written notice.Equal Housing Lender. SunTrust Mortgage, Inc., 901 Semmes Avenue, Richmond, VA 23224 is licensed by the Department of Corporations under the California Residential Mortgage Lending Act; is an Illinois Residential Mortgage Licensee; is a Lender in Massachusetts having Mortgage Lender license #s ML1216, ML0133, ML1432, ML1914, ML1913, ML1815, ML2411, ML1214, ML2442, ML2491, and ML2538; is licensed by the New Hampshire Banking Department; is licensed by the New Jersey Department of Banking and Insurance, toll free 1-800-330-4684; is a licensed lender in Rhode Island; and is doing business in Arizona as Crestar Mortgage, 7250 N. 16th Street, Ste. 100, Phoenix, AZ 85020. 2010 SunTrust Banks, Inc. SunTrust, SunTrust Mortgage and Live Solid. Bank Solid. are federally registered service marks of SunTrust Banks, Inc.REV 031610FC 5. Short sale package requirements from the real estate agent Typically, the real estate agent will take charge of gathering all required documentation, including what the real estate agent needs to provide and what the seller needs to provide. The real estate agent will then be responsible for sending the documentation to t STM so the offer can be negotiated. th ff b ti t dThe real estate agent must provide the following documents:Arms Length Transaction documentHUD-1fully-executed listing agreementfully-executed purchase contract f ll t d h t t 5 The information contained herein is intended as informational material for the sole and exclusive use of the business entities to which it was distributed and is subject to change without written notice.Equal Housing Lender. SunTrust Mortgage, Inc., 901 Semmes Avenue, Richmond, VA 23224 is licensed by the Department of Corporations under the California Residential Mortgage Lending Act; is an Illinois Residential Mortgage Licensee; is a Lender in Massachusetts having Mortgage Lender license #s ML1216, ML0133, ML1432, ML1914, ML1913, ML1815, ML2411, ML1214, ML2442, ML2491, and ML2538; is licensed by the New Hampshire Banking Department; is licensed by the New Jersey Department of Banking and Insurance, toll free 1-800-330-4684; is a licensed lender in Rhode Island; and is doing business in Arizona as Crestar Mortgage, 7250 N. 16th Street, Ste. 100, Phoenix, AZ 85020. 2010 SunTrust Banks, Inc. SunTrust, SunTrust Mortgage and Live Solid. Bank Solid. are federally registered service marks of SunTrust Banks, Inc.REV 031610FC 6. Short sale package requirements: from the seller The seller must provide these documents, which the real estate agent will then submit to STM so the offer can be negotiated: Signed and dated financial worksheet listing all monthly expenses Signed and dated hardship letter (an explanation of why the seller is unable to paythe mortgage) Letter authorizing the real estate agent access to information on the account (must bedated and include the last 4 digits of the sellers Social Security Number andsignature, the full account number and the complete property address) Last two (2) years income tax returns Two (2) most recent bank statements (within 30 days) Third party authorization form (to give STM permission to speak with real estateagent, attorney or other third party) Current year-to-date profit and loss statement (if self-employed) Two (2) most recent pay stubs (within 30 days)6 The information contained herein is intended as informational material for the sole and exclusive use of the business entities to which it was distributed and is subject to change without written notice.Equal Housing Lender. SunTrust Mortgage, Inc., 901 Semmes Avenue, Richmond, VA 23224 is licensed by the Department of Corporations under the California Residential Mortgage Lending Act; is an Illinois Residential Mortgage Licensee; is a Lender in Massachusetts having Mortgage Lender license #s ML1216, ML0133, ML1432, ML1914, ML1913, ML1815, ML2411, ML1214, ML2442, ML2491, and ML2538; is licensed by the New Hampshire Banking Department; is licensed by the New Jersey Department of Banking and Insurance, toll free 1-800-330-4684; is a licensed lender in Rhode Island; and is doing business in Arizona as Crestar Mortgage, 7250 N. 16th Street, Ste. 100, Phoenix, AZ 85020. 2010 SunTrust Banks, Inc. SunTrust, SunTrust Mortgage and Live Solid. Bank Solid. are federally registered service marks of SunTrust Banks, Inc.REV 031610FC 7. The STM short sale approval processSTM will review the submitted information to ensure that the seller qualifies for a short sale. We will then evaluate the purchase offer relative to the amount owed and any other issues such as the presence of a second lien. One of our primary concerns is that the offer be reasonable, so careful, accurate home pricing is critical.1.Once all documentation is received, the short sale team completes a property valuation (appraisal or BPO per investor requirements)requirements). 2.The short sale file is then assigned to a Short Sale Negotiator on the short sale team who will review the file including the documentation and the offer. 3.If there is any missing documentation or a need for more information, the Negotiator will contact the designated third party or the seller. 4. 4 Once all of the required documentation and information is received and in order (refer to short short sale package requirement