Seller What to Expect During a Short Sale Transaction
IMPORTANT: The short sale process may take 6-8 months from the time the offer is submitted.
Once there is a contract, the package is submitted including the following:
* Signed third party authorization
* Offer
* Buyer pre approval or proof of funds
* Listing agreement
* Hardship letter
* Two years of full tax returns
* Two recent months bank statements
* Two recent months proof of income
* Financial worksheet
* HUD-1 Statement
It is not uncommon for the lender to receive a partial package because of the volume of files that they are working with. Some documents get lost when they are uploading the images in their system. Your lender/lenders may ask you for only some of these items. We have found that it is best to send all of this information to the lender to prevent unnecessary delays. Please note that lenders ask for updated financials throughout the process. Most lenders want up to date financials before the Demand Letter (acceptance) is executed.
The lender orders a Broker’s Price Opinion (BPO) to evaluate the property from a third party’s perspective, similar to an appraisal. The BPO agent, a licensed Realtor, will contact our team to gain access to the property. In rare occasions the lender may order a “drive by” BPO where they will not enter the property. The BPO states the market value of the property along with explanation of the local Real Estate market conditions. The Broker’s Price Opinion assists the lender to make the final decision to approve the short sale.
The lender assigns a “negotiator” to your file. Seldom do lenders allow communication with the negotiator. Often all communication is with the negotiator’s team. The negotiator’s team will advise when we can expect updates and estimated time of possible approval.
Please note that the foreclosure process continues throughout the short sale process. Once you receive letters from the lender’s attorney and/or the County Court contact Team Chais immediately. It is crucial that Team Chais is notified in order to postpone “public sale” if a date has been set. Frequently lenders will postpone a foreclosure date with a valid offer.
Regularly lenders continue their collection efforts through their collections call center until the property changes owners. The call center is a different department than Loss Mitigation. This could result in the customer service representative is not aware of the short sale nor the status.Do not be alarmed of such; the two departments are completely separate usually there is no communication between the two.
Should you decide deed in lieu of foreclosure, loan modification or bankruptcy during the short sale process, please inform Team Chais immediately since the lender will not entertain a short sale offer during such time. There are guidelines that must be followed.
Lenders accept, reject, or counter short sale offers. Team Chais will guide you throughout this process. With the acceptance of a short sale lenders often require a promissory note, deficiency judgment, 1099 etc… Every file is different and this information is not available until acceptance of the short sale. Please note that we are licensed Realtors not attorneys or tax professionals; we recommend that you seek advice from appropriately licensed professionals in regards to these items.
Any questions, comments or concerns please contact Tiffany Avril at Team Chais Monday through Friday. For a quicker response email your inquiry to tiffany@teamchais.com. Once all the information is gathered Tiffany will respond by the next business day. During the initial meeting with a Team Chais representative scheduled communication will be set and your preferred type of communication phone call or email will be noted.
Team Chais is aware the short sale process can be long and emotional at times. During this difficult and stressful time you can depend on Team Chais. With our years of experience of getting short sales closed and preventing foreclosure we are committed to relieve you and your family of all the headaches and stress by making the process go as smoothly as possible with our proven systems. We are a team of experienced licensed Real Estate Agents, Top Notch Negotiators and Certified Distressed Property Specialists. Team Chais is well recognized in working with lenders and attorneys in this highly specialized process.
Thank you for your trust. We look forward to serving you.
Regards,
Bradley J Chais
Principal
Acquisition Specialist
