Short Sale Process

The short sale process can be complex, but typically it works as follows:
1. Engage a real estate agent to list the property. You want one with experience and the knowledge to get the short sale closed. You can reach me at 954-608-0931.

2. Contact the short sale negotiating company. If I list your short sale for you I will immediately put you in contact with the only short sale negotiating company that I use (Exclusive Title Co.). They are the best in the business, and they don’t charge the seller anything.

3. The necessary documents are collected from the seller (listing agreement, bank statements, etc.) that are required by the mortgage holder in order to process and complete the short sale. One of the most important documents you will submit is the authorization letter. This is a letter, signed by the seller, authorizing the short sale negotiators to speak for you on the loan.

4. Seller completes and submits to the short sale negotiator their hardship letter (a letter explaining the financial hardship that is causing you to need to short sell the property) . This should be completed in step 1 but can be completed as late as the time an offer is accepted and sent to the mortgage holder. The documents collected in step 1 will be used to verify the financial hardship by the original mortgage holder.

5. An offer is received and signed by the seller, and then submitted to the original mortgage holder for approval.

6. The lender will review a sample closing statement, which will show the proposed selling price, any remaining loan balances, property liens, and second or third mortgages. It will itemize all expenses, including real estate commissions and other fees and expenses associated with the closing. This will give the original mortgage holder their net number which they will use to determine if they will accept the offer.

7. The original mortgage holder will then seek a broker to provide a opinion of price (B.P.O.) by examining the house and the market value of comparable active and recently sold properties in the area.

8. If the original mortgage holders “net” figure is within their guidelines they will approve the short sale, and issue a short sale approval letter stating their terms.

9. After we have the short sale approval letter and we have gone over the terms of the short sale approval with the seller we can schedule the closing.

10. Close the deal.