Nationstar Mortgage Short Sale process and Package
Over the last couple of years Nationstar Mortgage has become a major presence in the loss mitigation side of real estate. They have been purchasing mortgage rights and servicing rights from some of the bigger banks and investors for the last few years.
As a result of this, more homeowners who are facing default will be in a situation where their loan is with Nationstar or could be sold to Nationstar. We are going to examine the Nationstar short sale process and talk about what is entailed in compiling the Nationstar short sale package.
First of all, Nationstar has to follow whatever investor guideline that the investor has established when it comes to the short sale process. It is always good practice to find out who the investor is on the loan prior to starting the short sale process, and to become familiar with the investor’s guidelines prior to starting the short sale process.
Nationstar also utilizes the Equator platform to handle their short sale transactions, so it is best that your realtor or professional handling the short sale has a working knowledge of the equator process.
The process for Nationstar follows a similar process as other short sale servicers and investors, but the Nationstar process does have a few slight nuances.
1. Gather all required documents to submit a short sale package prior to even listing the home. This will save you time and headache later by getting you prepared early on. Nationstar does require specific branded documents for their short sale package. The following is what you will have to gather for a Nationstar short sale package which can also be found on their website (note this is not for FHA or VA loans).
· Nationstar branded Financial Worksheet
· Uniform borrower’s assistance form if it is a Fannie or Freddie investor loan
· Request for Mortgage Assistance (RMA) if applying for a HAFA short sale.
· Nationstar third party authorization form
· Nation Star Hardship Affidavit
· 4506-t with Nationstar’s information filled in on it
· Last two years tax returns
· Financial hardship letter
· Last 60 days bank statements
· Last 60 days pay stubs
PLEASE ALSO NOTE: when you get an offer on the property, Nationstar requires that the buyer fill out a loan application with them to see if they qualify. They do not make them use Nationstar for funding but this generally is a requirement on all Nationstar short sales.
2. Once all docs are gathered contact a realtor, if you have not already done so, to get the property listed and have your package sent to Nationstar to have them open up a short sale.
3. Once you receive an offer, if you already have the short sale template set up with them the turnaround time becomes much shorter. Hopefully, they have already been to the house to do their valuation prior to receiving an offer so that everyone has an idea of the value that they are looking for. Generally, the timeline for Nationstar is 45-60 days for approval or denial.
This is just a basic overview of the Nationstar short sale process; we will go into more detail in a future post about Nationstar’s auction process, and their process with other investors. You can also check out my website at www.moorebrittingham.com for more information.