To succesfully complete a short sale, you must understand the process.

Short Sale Process Explained. Start By learning...

The Short Sale process at first seems extremely overwhelming but once you dive into it is really not that bad. Just take once step at a time.

When getting started you have to learn which short sale program you may be eligible for. This is very important because it will tell you exactly which documents are needed and if you’re eligible for a cash incentive to short sale your property.

We can call your bank with you to find out. Just call our support line 888-262-6933

Whenever we are working with homeowners we always tell them to get familiar with the checklist of items needed to complete the short sale. The checklist is typically the same for each bank other than a few documents that may be bank specific.

Typical Short Sale Checklist:

1. Financials – include bank statements, pay stubs & tax returns.

2. Hardship letter – must be signed and dated and clearly explain why you need to relocate or have not been able to make your monthly obligation

3. Bank specific documents requesting a short sale which typically include a monthly expense sheet.

Other items needed like the Listings Agreement, Sale Contract & Closing Statement will be supplied by the Realtor and Title Company you choose. When choosing a Realtor is is important that you choose a  Realtor who understand the short sale process as there are various tasks they will need to perform. You will also need a Title Company who understand the process so that they can  do preliminary searches making sure there are no other liens that would prevent the closing.

The next step in the short sale process is submitting all the documents to the bank so that they can verify and then order a home valuation. The home valuation process in a short sale is pretty simple, the bank will order a BPO (Broker Price Opinion) or an actual appraisal. This is very important step and it is important for your Relator to make sure that they have an accurate value. To high and then you wont be able to obtain offers, the good news is their is a process to dispute any in accurate values so typically one way or another it comes together.

Once value is obtained and assuming the contract meets the banks demand. The file is reviewed by management and the investor whop actually owns the mortgage note (I.E. Fannie Mae, Freddie Mac, etc.) This part of the short sale process usually takes about a month, in fact there is some new regulation that says they are to respond to an offer in 30 days or less.

Assuming Bank/Investor agree to the offer, they will then issue a short sale approval. At this point you will have the opportunity to review  the terms of the short sale approval. Providing you agree then the closing will move forward and you will typically have about 30 days to relocate.

If any financial incentive is being offered you will receive at it closing when you sign the closing documents.

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