What is a short sale?
A short sale in the most basic terms means the seller owes more to the bank
than what the home will sell for in the current market.
As you know, short sales can be a long and difficult process. Nationwide, only 15-30 percent of short sales get approved. By specializing in short sales, we have learned where many of the problems lie, and have developed procedures to help make short sales close. Once we are handling your short sale, you, your client, the buyer, and the buyer's agent will all be given a proprietary log-in so that you can follow your short sale online. As each situation is different, short sale approval times will vary, but each party will be able to follow the short sale process. In addition, you will be kept abreast though regular emails on your files as developments occur.
Short Sales
The Short Sale process is typically quicker than the foreclosure process although it depends
heavily upon where the homeowner is in the foreclosure process (if the homeowner is in the
foreclosure process), how quickly an offer can be obtained, and how quickly or slowly the lender
responds to the short sale package submission.
1. Realtor lists the property on the MLS.
2. Realtor provides homeowner(s) with a list of required documents to get together.
3. Realtor reduces the listing price until an offer from a buyer is obtained.
4. Realtor delivers documents to Short Sale Operations LLC
5. The Short Sale package is put together and submitted to the lenders.
6. A Loss Mitigation Specialist is assigned to the case, usually 2-6 weeks after package
submission.
7. A “BPO” (Broker’s Price Opinion) or Appraisal is obtained by the lenders.
8. The lenders accept, reject, or counter the short sale offer. Now is the time for the loan
payoff negotiations which can last several weeks.
9. The lenders agree to the loan payoff.
10. An “Approval Letter” is issued by the lenders stating the terms of the approval. The
homeowner must sign this letter stating that they understand and agree to the terms.
11. The closing date is usually set by the lender and all parties now work quickly to close the
transaction.
