Short Sale Process Overview
Aloha,
Thank you for taking the time to learn more about the short sell process. Please be aware that no bank or investor are the same, this is a general outline. If you qualify and would like to sit down and talk about your options, call me today.
Customers should call their lender to discuss their workout options after becoming delinquent. If other workout options do not apply, then the Short Sale process is discussed. We can discuss Short Sale transactions with the customers or their authorized agent. A discussion is held regarding the Short Sale process and the documents that need to be supplied to the lender to begin the process.
Please Note: The borrower must have a current or eminent financial hardship and the loan must be delinquent.
While the discussion and upfront verbal agreement to begin the process are important, the formal process officially starts when we receive the signed purchase contract, listing agreement, copy of MLS history and preliminary HUD 1 statement.
Once lenders have received a copy of the signed purchase contract:
• Within approximately 2 days of receiving the faxed documents, the customer or agent will receive confirmation of the received purchase contract. If the offer is possibly viable, an interior appraisal will be ordered.
• Within approximately an additional 3 days an appraiser will be assigned, they will contact the customer or their agent to schedule an appointment to conduct an interior appraisal.
• Within approximately 7 to 10 days after the appraisal is ordered, the results of the appraisal will be received by us. This is absolutely dependent on obtaining access to the property in a timely manner.
• Upon receipt of the appraisal, we will conduct an analysis to determine if the Short Sale offer is aligned with the fair market value.
Additional negotiations or information may be requested, (examples of but not limited to):
• Purchase price
• Changes to the HUD 1 statement
• Funds and/or a promissory note from the borrower
• Information about the buyer
• A deficiency letter signed by the borrower
• Explanation of the hardship
• Most recent month's income verification or if self employed, last 3 months P&L
• Most recent year's tax return.
Once all parties, including additional lien holders, have agreed to the negotiations banks and/or its investors/insurers will render a decision in written notice.
The decision to accept or decline the short sale will be communicated to the customer and/or their agent within approximately 48 hours of the decision.
