The Short Sale Process
The short sale process is a complex process that can take several months to complete. We have provided a general breakdown of the process below to help you better understand how a short sale works. By understanding the process, it will help you gain an insight on what you can expect and how we work together to produce a successful outcome to your short sale.
Part of our services is to handle the entire process from beginning to end, to make it as easy as possible on you. We will be in contact with your lender(s) throughout the process and you will not need to speak with them unless you wish to.
1. Interview and Hire An Agent:
The first step in the short sale process is to hire an experienced short sale agent to represent you in selling your property and negotiating with your mortgage lender. In our first interview which is often on the phone but can be in person if you prefer, is when we will go through all of your questions in detail, explain the entire process and discuss all the business points associated with the short sale. When you are ready we set up an appointment that will be held at your property. At this time you will walk us through the property; we list the property (MLS), we will take photos, and set up the showing arrangements. We also typically pick up all lender documentation required for the short sale at this time.
2. Contact your lender(s):
Included in the paperwork that we will go through with you is the “Authorization” form. This will allow our team to speak directly with your lender(s) for the purpose of completing the short sale. We will notify your lender that we will be working together with you in the short sale of your property. In most cases, the lender will not review the short sale until we have an offer on your property.
3. List your property on the market:
The next step in the short sale of your home will be putting your property onto the market. We do this through our real estate company “Your Advantage Realty”. The lender requires that we have an offer on your property, before they will review the short sale package. Our team will price your property based on the comparable properties in your complex/neighborhood and will handle the entire listing process. This will include making any small recommendations to get your property ready for showings and your property for sale. Please note very little is required to get a house ready for a short sale as all houses are sold “AS IS”.
4. Receive and accept an offer:
Once a buyer presents an offer on the property, we will begin by verifying their financing and down payment. Once all items have been confirmed, we will review the offer with you and make any recommendations to either counter, decline or accept the offer. The contract will be written contingent on the lien holder’s approval.
5. Submit the short sale package to your lender(s):
Once an offer is accepted, we will prepare and submit the short sale package to your lender(s). The package generally includes financial information about you, your hardship, your property, and your sales transaction. We will collect all of this documentation from you in our initial appointment and assist you in writing your hardship letter.
6. Receive and approve the approvals from your lender(s):
Once the short sale package has been submitted to your lender(s), the review and response period lasts approximately 2 to 4 months. During this time, we will be communicating with your lender and will keep you informed of the status. When your lender approves your short sale request, you will carefully review the terms and conditions of that approval. If you agree to all terms that the lender has presented, we will open escrow. The lenders typically give us 30 days to close escrow.
7. Escrow period:
The escrow period is a standard 30 day escrow. During this time, we will sit down with you to go through all of the disclosures on the property and escrow instructions. The buyer will complete an appraisal and appropriate home inspections on the property.