I may have put the cart before the horse on the last two posts about options to going into foreclosure. I probably should have placed this post before the other two. This is a list of things to get together and have before you begin working with your bank or mortgage company.
This is a generalized list, and there may be things on the list that your bank (this will also mean mortgage company, I am using bank from here on out, they are basically the same thing, and I am lazy, so I am using the shorter word) will not ask for, and there may be additional things that your bank may require.
This list is also something anyone working on your behalf to work out an option with the bank will also need. Your Realtor will not need your financial information to assist you in a short sale, but will need some of these items to work for you.
Pay Stubs for the last 30 days. This is for everyone in the household, and for all of the jobs that you’re working. This also will include any award letters from Social Security if you’re receiving Social Security payments.
Federal Tax Returns for the past 2 years. That is pretty straight forward, they will probably ask you to file your latest tax return if you haven’t already filed it. (This is if you filed for an extension or are talking to the bank prior to the April 15th filing deadline and haven’t filed last year’s taxes. They won’t ask you to file for the current year that you’re living in.)
Bank Statements for the most current 2 months. The bank wants to see what is and has been in your account recently, not a year ago. They will want the most current 2 months.
All Household bills and statements. You want to show the bank that you really are overextended. The bank also will want to make sure that you really have a hardship.
Your Promissory Note, Deed of Trust and or Mortgage. This is the stuff that you signed at the Title Company when you bought your house. It is always good to know where this is, so file it in a safe place. You will need other items from this stack of paperwork like the Truth in Lending form and the HUD Settlement/Closing Statement.
Any other Liens on that you know about on your property. These are second or subsequent mortgage loans that you have taken out including lines of credit, and any tax liens that you know about. They will also want to know if anyone has filed a judgment against you and or the property.
Any Trustee Sale notices that you have received from your bank or its representatives including Attorneys. This is most commonly referred to as a Notice of Default. You normally will receive these when you are 90 days late with your mortgage payment.
Any other documents that you may have received from the court regarding a foreclosure. Once again, this is anything that has come from the court about the foreclosure.
A Hardship Letter. This is a letter that you write explaining why you’re in this situation. Be honest, it will be difficult and a blow to your pride, but it is necessary to be up front and honest with the bank.
A Release of Authorization Letter. This letter allows other people to work for you with the bank. For example, a Realtor while negotiating a short sale will need to have this filed with the bank, so that the bank will know that the Realtor is working with you.
ALL correspondence, letters (open or unopened and their envelopes) from banks, courts or anyone regarding your home or it’s foreclosure. This means everything, create a file for this stuff and keep it handy. You will understand why it is important once you begin talking to the bank or someone working on your behalf.
Once again, this is a generalized list that we have put together. The bank may require more or less from you. This is meant to help, not overwhelm you. Once again, I would say talk to a Realtor they should be able to assist you. In Cedar City contact either Darcy or me. We would be glad to help.