The short sale process can be a confusing and complex process for a homeowner that does not know or understand what to expect. We have provided a general breakdown of a short sale, from start to finish, so you are educated on the necessary steps taken throughout the process. By understanding the milestones in the short sale process, we can work together as a team to successfully complete the short sale.
(Note: there are some varitions on this process dependent on the servicer of your loan. For a free consultation and evaluation to determine if a short sale is an option for you contact Bryan Mancuso.)
Step 1: Schedule a No Obligation Consultation
In our first consultation, we will go through the specifics of your situation, which includes a home evaluation plan, so that we have a better understanding of your situation and if a short sale is the best option for you. All of your questions will be answered in detail, including an overview of the entire process and discussion of all the business points associated with the short sale.
Step2: Listing The Property For Sale
Once we have determined whether or not a short sale is the best option for you, we will schedule a time to meet with you. At this time you will walk us through the property and we will note any important features of the property. We will have you sign a Listing Agreement so we can represent you and market the property for sale. We will take photos, and set up the best showing times according to your preference (in many cases, due to our extensive network and database, there is no need for a sign to be placed on your property, no open houses, and even no need to market your home on the MLS).
Step3: Contacting Your Mortgage Lenders
Shortly after our listing meeting, you will be contacted by our Listing Manager so that she can gather the necessary documentation needed to work with your mortgage lender in the short sale process. One of the documents she will be sending to you is a Third Party Authorization form. This form 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.
Step 4: Listing Your Property for Sale
The next step in the short sale of your home will be putting your property onto the market. In most cases, 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 that have recently sold and are currently listed for sale. We will order a termite inspection at this time so we have the information ready for any buyers that will be submitting their offers on the property. We will handle all of the details for you will take care of the entire listing process. If necessary, we will recommend any small recommendations to get your property ready for showings and your property for sale at this time. Please Note that short sales are sold “AS IS”, so very little, if any work will be required to be done on the house.
Step 5: Receive an Offer
Once a buyer presents an offer on the property and their financing and proof of funds to close have been verified, we will review the offer with you and make any recommendations to either counter, decline or accept the offer. In the case of multiple offers, we will make recommendations on which offers to move forward with as well. The purchase contract will be written subject to the mortgage lender’s approval on the short sale.
Step 6: Submitting the Short Sale Package to the Mortgage Lenders
Once you have accepted an offer, we will prepare and submit the short sale package to your lender(s). The package generally includes your financial information, a detailed letter explaining your hardship, information regarding your property, and details regarding the offer and qualification of the buyers. We will collect all of this documentation from you in “Step 3″ listed above, and we will assist you in writing your hardship letter.
Step 7: Communicating and Negotiating the Short Sale Approval with the Mortgage Lender(s)
Once the short sale package has been submitted to your lender(s), the review and response period lasts approximately 1 to 3 months. During this time, we will be communicating with your lender on your behalf and will keep you informed of the status on a weekly basis. When your lender approves your short sale, they will issue a “Short Sale Approval Letter”. We will go over the letter with you and 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 from the date of their approval.
Step 8: The Escrow Period
The escrow period is a standard 30 day escrow, unless previously agreed to by you and the buyer(s). During this time, we will sit down with you to go through all of the required seller’s disclosures on the property, as well as the escrow instructions. The buyer will complete submit their initial deposit into escrow, order an appraisal and appropriate home inspections on the property as well. If the buyers are securing financing to purchase the property, they will be finalizing their lending options at this time as well. Our team will coordinate the closing to insure that all parties stay within the given timeframes and deadlines.
For more information or to request a consultation please fill out the contact request form below