A 3rd party authorization is a one page document that authorizes the bank to discuss a Home Owner’s loan details with the person identified in this document. Home Owners typically name their San Jose Short Sale Agent or Broker in this document since they will be initiating a Short Sale process with the bank. Without a fully executed 3rd Party Authorization, your bank is legally prohibited from discussing your loan details with anyone else other than the home owners. That is why you will need a 3rd party authorization to start your San Jose Short Sale.
Since 3rd Party Authorization is a legal document, most banks have their own form developed that you can request. But early in the process of a Short Sale you can also create a 3rd Party Authorization to allow your San Jose Short Sale Agent or Broker to discuss your options with your bank.
Let’s explore what you will need to include in your 3rd party Authorization form:
1) Full Name: 3rd party Authorization must include home owners (borrowers) name as it appears on their loan documents. This is the person who is authorizing the bank to release and discuss your loan’s detail information with your San Jose Short Sale Agent. If there are more that one people on the loan, including one person is sufficient to get the Short Sale process started.
2) Social Security No: Some forms only require last 4 digits of the home owners Social Security Number.
3) Property Address: Property Address must be filled out on this form. This is the address where your San Jose Short broker process your Short Sale faster.
4) Loan No: The loan number make it simpler for your San Jose Short Sale broker to work with the home owners bank.
5) Expiration Date: A 3rd party authorization can have an expiration date. If you fill out this date, your lender will stop communicating with your San Jose Short Sale agent after the expiration date.
Since Short Sales typically take 30-45 days and you should keep updated copies of your Bank Statements and Pay stubs during this process. Your lender will be sending you confirmation information about your Short Sale process. In fact, if you have been ignoring your bank for the past 2 years, its time to open the letters that your bank will be sending you.
Finally, an integral part of developing a successful Short Sale Process is to get the right Home Value that will increase the chance of Short Sale approval from your bank. After all, it’s crazy to start a Short Sale process with your if there is no chance that your bank will approve the sale at your List price and you won’t get any offers on it.
Contact Us to explore all your option to avoid foreclosure.