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SHORT SALE PROCESS 

In order for your short sale to run as smooth as possible.  You must have all pertinent documents completed necessary for your agent to list your home and be ready once an offer comes in.

Letter of Authorization – You must provide a letter of authorization for your listing agent, which gives your agent the permission to speak with your lender on your behalf.

Prior to put your home on the market as a Short Sale, the following documentations are needed:

After an offer comes in and has been negotiated and accepted, the contract for sale and purchase along with the following and aforementioned documents will be faxed, emailed and/or uploaded to the lender’s short sale management software, such as Equator:

Expect to wait at least 90 days for a response from the bank.  During the time your package is being processed, the lender will order and independent broker price opinion and/or appraisal to ensure the contract is for fair market value.  Should the appraisal and/or BPO values come in higher than the contract price, the lender may elect to counter to their appraised value.  The buyers may elect to comply, to stay firm or walk away.

Should there be two lenders involved, or a mortgage insurance (PMI), then I will negotiate between the two of them focusing on a fully approved short sale on your behalf.

Should lender deem you have sufficient savings or income, they may ask for a cash contribution or a promissory note which can be negotiate at favorable terms to offset some of the loss.

Once the lender approves your short sale, they will issue an approval letter.  Such letter should be taken to your attorney to further get clarification if necessary.  Your lender will set a closing date that generally states within 30-45 days.  I will communicate to the buyer or buyer’s agent so they stay on track with financing and other terms and condition of the contract in order to have a successful closing.