1. Evaluate sellers’ situation to see if they qualify for a short sale and determine what possible issues may be involved (tax, deficiency, etc.)
2. If pre-foreclosure determine status of NOD and Trustee sale date (if applicable).
3. Determine type of loans that will be short. Analyze servicer, investor and PMI if any.
4. Recommend pricing strategy for the home and set expectations for the transaction based on above the information and time line.
5. Start property marketing.
6. Assist seller in preparing documentation for short sale lender.
- Financial work sheet, hardship letter, etc.
7. Submit authorization letter to short sale lender
8. Attempt to pre-negotiate short sale with lender.
9. Complete all standard and accelerated marketing steps.
10. Receive offer & if appropriate keep on market available for other offers.
11. Complete package of documents to submit to lender (usually 20-40 pages).
12. Submit to short sale lender (repeat steps if there is a 2nd mortgage).
13. Verify lender received package.
- This step often requires 2-5 calls and follow ups. Each call usually takes 20-45 min.
14. Update buyers broker on progress and often times educate them on the process and expectations.
15. Short sale lender then assigns to a “negotiator” or “specialist”. Attempt is made to reach this person. Depends on procedures for each lender.
16. Short sale lender orders a BPO. Meet BPO agent onsite and provide comps necessary.
17. This process between steps 10 & 16 takes between 30 – 120 days. As a result the 1st buyer often withdraws their offer and we need to repeat steps 9 - 15, sometimes more than twice.
18. If there is a 2nd mortgage steps 11 - 16 are repeated.
19. Receive offer from short sale lender(s). Negotiate terms. Move towards closing.
20. Buyer completes inspection.
21. Appraisal is completed for buyer’s lender.
22. Closing is scheduled with Title Company.
23. Transaction is completed.
24. Credit rebuilding program is initiated.