The short sale process can be complex. The right Realtor
partner is imperative to help guide you through the maze of negotiations,
paperwork and marketing. Although each situation is unique, the steps in
the short sale process are somewhat similar:
Step 1: Evaluate the
situation
The first step in the short sale process is determining
if a short sale is right for your situation. Make sure to explore all your
options including loan modification and housing concelors. Prepare a
budget and understanding realistically where you are at
financially.
Step 2: Gather the
documents
Assemble documents that will be needed by your lender and
your Realtor. At a minimum be prepared to disclose current income, bank
balances and first and second mortgage balances on the property.
Step 3: Contact a professional
The right
Realtor partner is imperative to keeping the process on track. Contact
someone with experience in both marketing your property and working with
lenders. I would be honored by your consideration of my services.
Step 4: Contact the lender
Your lender needs
to be aware of your intentions to attempt to sell your property. Many
lenders will pause the foreclosure process while a short sale is in
negotiation. Your Realtor will work with you and your lender to understand
the situation, the lender requirements and the associated timeframe.
Step 5: Market and sell the
property
Your Realtor partner will assist you in determining an
appropriate listing price for your home that is market competitive and will get
it sold. Be prepared to work with your Realtor to market your property by
allowing for showings, keeping the property neat and posting a sign in the yard.
Step 6: Submit the short sale package to the
lender
Most lenders have specific items they would like to be
submitted in order to consider a short sale. These usually include
financial documents such as current paystubs, income tax returns for two years
and bank statements. You will also want to compose a hardship letter that
details why a short sale is necessary to avoid foreclosure or your
property. Finally, your Realtor will assemble all the property related
documents and submit the package to the lender on your behalf.
Step 7: Negotiate contract with all
parties
After review of the short sale package, your lender may have
additional requirements or changes to the contract. Your Realtor will work
with you, the buyers and your lender to finalize the package and make any
changes necessary. Your Realtor will also provide your lender with
valuable market information such as trends, current inventory and comparable
sold properties to help the lender understand the current value of your
property.
Step 8: Close the transaction
Once
all parties are satisfied, a closing date will be scheduled to sign appropriate
paperwork and turn over possession of the property to the new owner.