Short Sale Steps

Gather Documents for Submission:

1.  When submitting a short sale to the short sale department you will need have your realtor or seasoned short sale specialist gather the information needed.  Most often the documents are collected and faxed by the short sale specialist.  We use a systematic approach to insure proper delivery.  Infact, we call to verify that all the documents have been delivered into the system at your lender.  We use a table of contents method along with a fax cover sheet. When we call, we verify that the number of faxed documents matches the amount that we sent. We also have the person over at the bank verify that the documents were sent and can be read easily and in proper alignment. 

Timely Updates:

2.  We call the bank on a regular basis to make sure things are moving smoothly and that they have our files ahead of others for a smooth transition. 

Appraisal Value:

3.  We include in every short sale a BPO (broker price opinion). This is a short version of an appraisal to let the bank get an idea of what the property value is and why we accepted the offer we did. (the seller accepts the best offer).

Other Mortgage Loans, You May Have:

Before we can open escrow, we have to make sure that you get approved for any other mortgage loans you have to short sale. Many people have more than one mortgage loan. If that is the case, we have to submit short sale package for each mortgage loan that is a lien against the property for which you are conducting a short sale.  Most people have just one additional mortgage lien. What we call a 2nd trust deed.  Few have a 3rd trust deed.  Each has to be negotiated.  These mortgage liens usually require a full short sale package with a lot of documentation. The seller must prove that they have a hardship.  This can slow down the total short sale process depending on the lender that owns the subordinate lien.  We can define that issue when we talk to you about your overall situation.  The subordinate lien holder may require a cash contribution from the seller in order to satisfy the lien. We can sometimes negotiate the contribution away or lessen the amount.  Often, the primary lien holder may pay off the second lien holder to close the short sale.  

Open Escrow:

4.  Once the your lender has accepted your offer and we have negotiated the best terms for the seller, we open up escrow on behalf of the seller and the buyer to close the transactions as soon as possible.  The escrow timeline is often shorter since we have the buyer approved by their lender and we have included a DU or LP underwrting approval from the actual lender. We always include that approval in the short sale offering.

5.  Escrow is opened. The conditions of the escrow are met and we work towards a fast closing.

Sellers Incentives:

6.  Since the short sale has been approved, the seller understands the details of the approval and is aware of any incentives which were accepted by the lender.  At the time of closing,(when escrow actually closes) the seller benefits from the incentive agreed upon by the lender.

Time to Move Out:

7.  Usually, the seller has 3 days after the close of escrow to move out of the property and transation into alternative housing.

The New Buyer Gets the Keys:

8.  The buyer get their new house keys and moves in.

Working with Steve Linnin and his team can insure that the above process moves smoothly.  Give him a call and he can answer your questions.

Most short sale department negotiators want to be efficient as possible and will work hard to achive that goal.  Let's help them in that process.