Short Sale Process from Start to Finish

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There is a lot more work to a short sale than a normal sale. With a normal sale you simply have to get a buyer to make an offer on a house. The seller will make a decision in 5 minutes. If the seller approves, the deal is ready to close.

A short sale Is much more work. You have to get a buyer to make an offer. But, then the real work starts. It can take 40 , 80 and sometimes even a 100 hours to process the short sale. Lenders have all sorts of weird forms. Their employees are overworked. They are forced to process more files than they can handle.

Part One of a Short Sale: preparation, Seller Consultation. We explain how the process works to the seller. Then, we answer any questions or concerns. Many sellers are concerned about the process. We want to make sure they feel comfortable with the process.

More of Part One is Collection of Financial package. Most lenders require copies of the sellers last 2 pay stubs, last 2 months bank statements, and last two years tax returns. We have to gather all of that and compile it to submit to the lender.

More of Part One is List the Property for Sale. We list the property in the MLS and promote it to potential buyers. We let other agents and buyers know the property is a short sale.

Part Two: Negotiate the buyer’s offer and submit it to the lender. Negotiate the buyer’s offer to the seller. Then, we give them our recommendations on how to proceed. The seller will accept, decline or counter the buyer’s offer.

More of Part Two; Prepare the short sale package to submit to the lender. We call the short sale lender and find out their fax number or their web address for short sale documents. Then we submit it to the lender.

Part Three:  Get the short sale lender to accept the buyer’s offer. Research the lender’s guidelines for short sale approval. We research the rules the lender will use to approve or deny the short sale offer. Approximately 80% of all loans are not owned by the individual lender. In these cases, we can find out who owns the loan and their guidelines for short sales. Once we have the guidelines, we will know how to proceed. Find out what the lender thinks the property is valued at. Lenders all use different techniques to determine the property value. We want to find out what they determined the value to be. If they think the property is valued close to the buyer’s offer, then the short sale will usually be approved. If they think the property is worth substantially more, then we have work to do.

In this case, we will have to dispute their valuation. We do this thru a number of methods. Normally we will send the lender our own valuation. We document all the necessary repairs and comparable sales. Often, the lenders will reconsider the value. At that point we can proceed.

Negotiating the final details for a short sale approval. We often have to make small changes to the closing statement. Or the lender might need certain documents updated or changed. After that we get the short sale approval letter.

Part Four: Coordinate everything to thing to closing. Reconcile the short sale approval letter with the proposed closing statement. We will send the approval letter over to the title company or title attorney closing the short sale. They will make sure everything matches up and we are good to go.

Coordinate everything to the closing. We coordinate everything between the buyer, their lender and the title company or title attorney. We follow up on all of the inspections, survey, and other items necessary to close the sale. We go to the closing and everyone is happy. The seller is able to go on with their lives without a  huge debt hanging on their shoulders. The buyer gets to move into the home of their dreams. Seeing all the smiles at the closing table makes short sales worth the extra effort.

If you are considering a short sale, you can call me at (239) 560-3149 I can explain how the process works in detail and answer any questions you may have. Or, discover how other sellers successfully completed a short sale and request a FREE consultation.

Thanks for reading this and if you or anyone you know is in need of real estate advice, please do not hesitate to contact me;

Donna Bishop Realtor call (239) 560-3149 or email me at; donnabishoprealtor@gmail.com

 

 

About donnabishoprealtor@gmail.com

Awesome Service: I make dreams come true. I am a Real Estate Consultant. I place great value on the needs, expectations and goals of all my clients whether buying or selling. By helping they find their perfect solution. I will truly listen to you. I have 33+ years experience in all phases of real estate. I am a Loan Modification Specialist, a Short Sale Expert, and a Successful Negotiator. A certified Senior Real Estate Specialist. Former Owner/Broker of A & B Mortgage Brokers of Fl. Plus a former Appraiser. A Professional Realtor. This experience and knowledge gives me the confidence to advise you correctly. I want you to have an Awesome Experience so you will recommend me to all the people you care about. After all, a referral is sending someone you care about to someone you respect.

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