The Short Sale process may vary, but there are a few very specific events
that happen to make a successful Short Sale transaction close. These
very crucial steps are as follows:
1) We need to get a "Release of Authorization" form signed by you. This
form allows us to call your bank on your behalf to begin the Short Sale
2) The bank is then contacted to discuss the option and possibility of a
Short Sale and determine what they require for a short sale package.
3) You will need to write a hardship letter explaining the financial
duress you are experiencing. The lender may want to see financial
documents such as, paystubs, bank statements, and any other financial
records you have for review.
4) Once we get a buyer for your home we submit a complete Short Sale package with a qualified offer and
include the buyer's financial information (ie., type of loan they have
to purchase the home, they're lender contact info, etc.).
5) Include an estimated settlement statement based on the offer received
so the lender can calculate final costs, including all closing cost, amount
of loan reduced, itemized fees and expenses associated with the sale of
6) The lender will then request a BPO (Broker's Price Opinion
aka appraisal) to
determine the market value of the home and consider it into their final
review before approving the Short Sale.
7) At this point, it could very well have already taken 4-6 weeks and the
lender still may not have their final answer if they'll approve the
This is just to give you a basic idea of the Short Sale process. Of
course, there are many other details, information, and skills that go
into negotiated a Short Sale, which we don't have written here. This
website is to provide some general knowledge to better understand the
Short Sale process, and not meant to be a step-by-step guide. Please
understand, we have to do this to protect our intellectual property and
skill on successfully closing Short Sales.
If you are falling behind in mortgage payments, however, do not wait too
long to contact us. Timing is everything when considering a Short Sale
and we need every minute we can to make sure your lender approves the
To get started with a FREE
Short Sale consultation, call us today at: