When lenders agree to participate in a short sale, they are agreeing to accept less than the total amount due on an outstanding loan(s). After the property owner agrees to go forward in the short sale process, there are several critical steps that are taken before reaching the closing table.  These steps involve a qualified, experienced Realtor and a bank negotiator along with legal counsel to work together through the intracate issues that can arise in accomplishing the Short Sale.

First step is hiring the right Realtor. They will help you set a price to find a buyer for the property and then find the buyer.  While this is going on, you will be working on assembling a package to essentially plead your case to the bank.  This package will include:
  •  Authorization / Disclosure Letter: demonstrating that the lender is able share sensitive information with the broker, bank negotiator and legal counsel.
  • Hardship Letter: setting forth the financial circimstances and reason for not being able to pay the entire loan balcance.
  • Copies of Bank Statements
  • Proof of Income and Assets
  • Preliminary HUD Form-1Settlement Statement: this determines all projected costs, including but not limited to broker fees, commissions, closing costs, legal fees, taxes and other administrative costs.
  • Aggregate Loan Balance: is the principal and interest, along with fees on all loans secured by the property.
  • Title Search: provides the lender and negotiator with a clear picture of the property's Title status, encumbrances, liens,judicial orders or any material items impacting the property.
  • Contract with a Buyer: it is best to approach the bank with all of the above items and an fully executed contract with a qualified buyer.
Short Sales need to be handled by trained professionals who know and understand entirely its development.  It is very rare that a home owner is able to achieve a short sale without the proper team in place.  Your experience team knows who to call, where to call, what they need and how to keep the process moving.  Due to time sensitivity of the deal, mistakes are easy to make and unfortunately the lenders have zero tolerence for them.  Every step must be executed with precision.

Understand that there is no sure thing in this process. The lender could require the seller to to declare the balance difference in their loan as income and the the seller would pay income taxes on that balance.  They also do not have to forgive the balance.  However, the drawbacks are generally not as severe as foreclosure, bankruptcy or additional bank litigation.

I have an experienced, professional team in place to make the short sale process as simple and easy as possible.  My teams fees are entirely covered by the lenders and there is no up front fee to me.  So if you are thinking a short sale is the best way for you to navigate troubled waters, give me a call so that we can sit down and have a confidential conversation about your needs.