Short Sale Qualification - Provide Personal Banking Info + Business?

[notagain55]

What is the name of your state (only U.S. law)? SC

My wife and I have to move to take care of a permanently injured family member and are seeking a short sale. Personally, we have very little money. I have a business (LLC) which has some cash assets - it's an advertising company) so need to keep cash on hand for churning expenses.

The mortgage holder is requesting statements to determine if we qualify for a short sale. Do I have to provide both personal and business bank statements or is the bank just looking for personal & can't consider the business?

I'm not trying to do anything shady here, but I don't want to provide information they may not need to be privy to - like if they couldn't force liquidation of the business & my means of making a living to pay off the house & providing that info would just unnecessarily tip the scale against us.

 

[justalayman]

the bank can ask for, well, actually demand anything they want to. They can use whatever criteria they want to. They are not required to accept a short sale so if you want them to agree to a short sale, you either play by their rules or they aren't going to play. Ask the bank what they want.

they can't force you to liquidate your business. All they can do is refuse to agree to a short sale.

 

[notagain55]

True, but what I'm asking is if they ask for bank statements, should I assume they mean personal + business? If I ask them of course they'll say both but would I need to take the initiative and send both up front or could I just send personal and see if they ask for both? Not trying to do anything illegal by any means - just not volunteer more info than is required.

 

[justalayman]

notagain55;2978054]True, but what I'm asking is if they ask for bank statements, should I assume they mean personal + business?

if you want to play the game a bit, give them your personal info. If they ask if there is business info, just say you were not aware they wanted that as well and then give that to them.

 

[tranquility]

If you are the sole member of the LLC, I'd say you'd have to disclose the disregarded entity. If there are other members, you don't have to disclose the entity, but you would have to disclose your ownership of it.

They will also ask for a tax return. Since that will have a schedule E page 2, they will also ask you for the K-1. They will ask for the financials if you have a right to them as well.

 

[notagain55]

If the bank requests a Dodd Frank form, does this change the ballgame? My real estate agent working with the short sale says they may ask for this but isn't sure. I read through the form and since I'm not applying for a govt program I don't see why they would.

Seems like the Dodd Frank just asks if I've ever been convicted of crime and saying the forms aren't forged. Does leaving an account out count, though?

Hopefully they don't even request this but just in case I'm not wanting to do anything illegal. Just trying to protect my rights as it pertains to finances.