What is the process to complete a short sale?
There is some paperwork to do at the beginning that we can assist you with but most is handled by us. After we have agreed to purchase your home with a short sale, the process is:

  1. A purchase agreement will be drawn up detailing the short sale the lender will be asked to approve. NOTE: The sale price of the home will mean nothing to you as the seller since in a short sale, no money can go to the seller, nor will you pay any money at closing. The sale price and short sale details will simply tell the bank how much money they will net from the sale. That is the number that is the key.
  2. You will be asked to write a letter detailing the financial hardship that caused you to fall behind on your mortgage. Any other proof of your financial hardships such as bank statements, medical bills, pay stubs, termination letters, etc. should also be included. We will assist you in this process.
  3. After we have prepared and sent the entire short sale package to the lender, the lender will arrange a BPO, which is similar to an appraisal, to determine the value of the property. This can take a few weeks.
  4. Based on the BPO, the bank will negotiate with us on the details of the short sale and after several weeks, they will either approve or deny our final offer.
  5. If approved, a date will be selected to close the transaction just like any other real estate transaction.