What type of information does the bank have through the short sale process to be able to determine how much money I have or determine what my net worth is? It’s important for me to explain to the clients how this particularly works, first that you have to understand is that if you’re engaged in the short sale process, one of the things that the banks can do is that they can pull your credit. Typically you sign off on your loan documents that they’re allowed to do this. And when they can pull your credit, what the credit report is going to show is you’re other debts. It’s not going to show bank accounts or what’s in them. But for example if you do have multiple properties, it will show the loans on there and the bank might be able to determine that you own other properties and valuate those properties to see if there’s any equity in them. It’s not going to show checking or banking accounts or money that’s in them.
The second thing that banks can use to determine what you have or what assets you have is any information that you provide to them. Understand that in a short sale process you will be filling out a tremendous amount of paperwork and you’re going to be asked to supply things such as bank statements. So if you provide them with these bank statements they are going to see what’s in there. If you provide them with tax returns, it may show on your tax returns any assets that you have, any income property or one case, stocks, anything that you’re receiving dividends on etc. Also in the paperwork many times is what’s called a financial worksheet that the bank provides at which place you’re going to go through enlist and itemize all of your assets and all of your debts.
The third thing is if you are banking for example with the same bank that you are dealing with on your short sale that is servicing it. For example, you bank with Chase and at the same time worked doing a short sale with the servicer of Chase, it’s going to be easy for them to look into your account and to see what is in those particular accounts ad how much money you have.
They don’t however have the ability for example, for working with Chase to go into any other bank accounts such as Bank of America or maybe a small credit union and determine what money is in there and what assets that are in there. You have to provide that information to them.
So again to recap very quickly the three ways the banks can determine what you have and what assets you have. One, they can pull your credit which is typically going to show your other debts. Secondly, any information that you provide to them with the paperwork such as bank statements, tax returns, financial worksheet. Third, if you do bank with the same servicer they can very easily and quickly look into those accounts.
Thank You very much for watching my presentation: Which Assets Of Yours Do The Banks Know About?.