Short Sale Process
Short Sale Process
Selling a home as a Short Sale can be a challenging and complicated process that is only improved by understanding the requirements and managing your expectations. Be forewarned...being involved in a short sale will require (and possibly test) your patience!
Here is an overview of a traditional short sale process:
- Hire a REALTOR(R) - Working with a real estate agent that has successful short sale experience to represent you in the negotiation and sale of your property with your lender will also help walk you through options and strategies unique to your situation.
- Contact Your Lender - Usually a lender requires that you enter into a contract to sell your property before submitting a short sale request, but pre-approval of short sales is a growing trend. You can authorize your listing agent to contact your lender in order to determine the lender's short sale requirements.
- List Your Property For Sale - Allowing your real estate agent to help you get a good price and a qualified buyer for your home will increase the chances of your lender approving your short sale request. Your agent can help you prepare your home for showings, make recommendations, conduct open houses, and interface with prospective buyers and their agents.
- Enter into Sales Contract - Once a buyer is interested in your home and submits an offer to purchase the property, you will be able to use the offer as part of your short sale submission request with your lender
- Submit Request to Lender - You (or your agent) can now prepare a short sale package for submission to your lender; your agent will explain what is required to be part of this package such as personal information, finances, details about the property, and the sale transaction. You may be required to include a hardship letter and obtain a short sale approval from any creditor with a security interest in the property.
- Obtain Short Sale Approval - The lender's response to your short sale request can take many weeks up through several months to obtain, and there is no guarantee the request will be approved. If it is approved, you and your real estate agent should carefully review the terms and conditions of the approval, noting if there is an expiration date.
- Perform on Sales Contract - You may inform the buyer of the short sale approval prior to the buyer starts to perform on the sales contract by making a deposit into escrow, completing inspections and appraisals, or obtaining financing.
- Close Escrow - At this point you will transfer the property title to the new owner (the buyer). At the same time the buyer will deliver their funds for down payment and closing costs to escrow. Both parties sign appropriate loan documents, the escrow officer gets the money where it needs to go, and you have successfully completed your Short Sale! Congratulations!
We here at RSJensen Homes Team are experienced with Short Sale transaction and would love to help you complete yours. Contact us with any questions or concerns!
Click here to download CAR's Short Sale Process PDF file