I would very much appreciate some guidance with the early stages of a short sale process with Green Tree.
Some quick facts:
• Short sale paperwork submitted two weeks ago for one property, 2nd to follow shortly.
• Only response from GT so far was to request payment. After refusal from seller, GT representative asked for further details on hardship letter (she felt it was not enough)
• Cash buyer is interested in both properties. Ready to purchase if Green Tree approves.
• Two condos located in West Palm Beach/Greenacres, FL area.
• Approximate market price is $50k-$60k each. Less than a third of the initial purchase price.
• No second mortgage
• HOA fees paid up to date
• Both are currently rented
• No payments made for October and November 2012
Questions:
1. Green Tree rep asked that hardship letter be amended to elaborate on the hardship. Does the initial hardship letter have to include all documentation (Figured info would be provided as requested from GreenTree)?
2. How should the rental payments from both tenants be handled?
3. Seller has owned property since 2005. Owns two other properties that are not underwater, one being primary residence. Overall debt exceeds income on a monthly basis and needs to get out from under the Florida properties. Other hardship factors are; care of elderly parent, expense to maintain properties, car needed for work has recently broke down and notice from employer of job abolishment. Any tips on when and what to provide in regards to making the hardship case? Seller has decent income but is tentative on how to present the hardship properly.
Regards,
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FYI. you will get a better response using the forums for questions and assistance and use the blog for sharing info
I would provide a complete short sale package from the beginning. The hardship letter should specifically state what has changed in the borrower's circumstances from the time that he borrowed the money that makes it so he can no longer pay. I would harp on the imminent job loss. Get this in writing form the boss and submit with the hardship letter.
The rents belong to the seller. I would suggest he start saving this money because GT is probably going to want a cash contribution.