SHORT SALE

What is a Short Sale?

A short sale occurs when a homeowner sells his or her mortgaged property for less than the remaining balance of the loan. The existing lender (or lenders, as the case may be) must approve the sale and will then write off the difference. There are potential risks that could arise from a short sale (such as a 1099 or deficiency judgment), and it is best to have a skilled negotiator guide you through this challenging process.

What is a Short Sale Negotiator?

The lender will have their own representative assigned to the file. They will be responsible for reviewing financials and determining the value of the home, and they will ultimately be the party that approves the sale for you. You may also work with your own negotiator that will help with this stressful process.

What can our Team of Short Sale Negotiators do for you?

  • We meet or consult with the Realtor and/or the Seller to obtain information to determine the suitability of a short sale.
  • We gather all of the required financial information to submit to the Lender to establish economic hardship of the Seller.
  • We manage the entire Short Sale process from onset to closing.
  • We negotiate with the Lender’s representatives.
  • We frequently communicate with the Lender during the Short Sale process and post closing.
  • We strongly advocate for the approval of the Short Sale transaction and for the Lenders waiver of collection rights against the Seller for the deficiency balance.

What is required to start the short sale process?

After the property is listed with a Realtor, a copy of the Listing Agreement and the following information are required to start the Short Sale Process. This is commonly referred to as “The Short Sale Package” and is the required documentation to be forwarded to the Lender.

  • The listing agreement with the Realtor.
  • Fully executed sales contract.
  • Pre-approval Letter for the Buyer’s Mortgage Financing. If the offer is for an all cash purchase the Buyer must furnish proof of cash to close.

AND the following documents are typically required for a short sale:

  • Hardship Letter
  • Two years most recent tax returns
  • Two most recent pay stubs
  • Two most recent Bank Statements – checking/savings
  • Current Financial Statement or Disclosure
  • Authorization for Short Sale Negotiator to act on Seller’s behalf
  • Authorization to disclose personal information
  • Most current statement with current balance due if HOA or Condo fees are applicable
  • Most current mortgage statement and existing mortgage information
  • IRS FORM 4506-T
  • Information on any City liens or code violations, if applicable

SHORT SALES are so complex, time-consuming, and can be very stressful. Working with the right team will make this process as painless as possible!