On Point Realtors short sale specialists are CDPE and HAFA certified. Through years of creating relationships with lenders we are able to facilitate open communication and successful transactions.
What is a Short Sale?
A short sale is when a lender agrees to sell a property for less than the amount owed. A successful short sale includes the lender forgiving all remaining debt.
The Short Sale Process
On Point Realtors can assist you in determining if a short sale is the right course of action for you. Exhausting all options including a possible loan modification should be assessed first. On Point Realtors can refer you to an attorney for legal advice.
Hiring an experienced certified short sale specialist is essential because not all Realtors are well versed in the guidelines each bank requires. For instance, if you qualify for the federal government program called HAFA there is a possibility you will receive financial relocation assistance as part of the program. The criteria in Short sale programs update frequently and having a Short Sale specialist who is up to date with the most recent information can mean the difference between an approval or denial.
Accumulating the correct documentation specific to each lender is essential, as the most common reason for a denial is incomplete documentation. On Point Realtors short sale specialists will provide to you a bank specific list of requirements for your short sale package. The documentation generally includes financial documentation and a hardship letter explaining why the loan payments are no longer affordable. This documentation is gathered, packaged and sent to the lender. Be sure to give your short sale specialist a list of all possible liens on the property such as a line of credit or second lien on the property. Each lien will have to be negotiated in order to provide clear title to the buyer.
Continue to occupy your home during the short sale process. Many banks require the homeowner to remain residing in the home until the close of escrow. Some short sale programs will only offer relocation assistance if the homeowner is residing in the home.
The property is marketed on the MLS and the short sale specialist will assist you with choosing the most qualified buyer for your property.
The first part of the escrow process is the negotiation for the short sale with the lender. During this period the bank may ask for additional documentation. The ability to provide documents in a short period of time is key to a quick short sale process. Documents generally need to be less than 30 days old so providing updated documentation or letters is common.
Once the short sale is approved the buyers can proceed with inspections, obtaining financing and closing the transaction.