Highly Experienced
Chris Pendleton
and
Shannan Marty
Associate Broker - Realtor®, ABR®,CDPE, CSP, CNE, CSSN, SFR, a-REO, PSC
Short Payoff or Short Sale
A short sale is contingent upon the seller and seller creditors coming to an agreement. It is a private workout solution.
During the process the seller will have to open themselves up finacially for examination in order for the creditor to determine if they qualify for a short sale. In order to do that, most lenders require the following information:
- Hardship Letter
- Financial Worksheet
- 2 months of bank statements
- 2 months of pay stubs
- One or two years of tax returns
There is no guarantee that the bank will accept the short sale. The typical time it takes a bank to approve a short sale is roughly 60 days. We have had some transactions take 2 weeks and other that took longer than 60 days. Some of the potential decisions include:
- Short Sale Potential Outcomes
- Approval with Full Release
- Approval contingent on Cash or Promissory Note
- Approval with Release of deed and seek deficiency
- Denial
Unfortunately the term 'Short Sale' doesn't have anything to do with the time involved in the short sale process.
Process
-
- Determine Value of Home
- Advise Legal and Tax Consultation
- Listing Agreement with Short Sale Addendum
- Authorization Letter - RE Agent contact lenders
- Market the Property - Using our Comprehensive 99 point marketing plan
- Offer
- Submit Short Sale Package
- Hardship Letter
- Copy of Purchase Contract
- Written Proof of Buyers ability to purchase property
- Copy of certified escrow instructions
- Preliminary Title Report
- HUD 1
- IRS From 4506
- Completed and signed personal financial worksheet
- Tax returns for past two years
- Employment paycheck for past two months
- Bank statements for past two to three months
- Short Sale Application
- CMA
- Short Narrative by Realtor - Market, Market Trends, Ave Days on Market, Number of short sales, Number of Foreclosures, Price Trends
- Marketing History, showings/feedback
- Formal request signed by seller that the short sale approved as submitted
- Frequent Follow Up
- Agreement Notice
