You Deserve a "BEACH ESCAPE"!

Steps to a Short Sale


STEPS TO A SHORT SALE

  • You will ask the lender if they will consider a short sale before beginning. Larger lenders, such as Countrywide, Wells Fargo, Bank of America, etc. allow short sales, but some smaller lenders may not.
  • Then provide them with the following: (they may have additional documentation needed):
  • Hardship letter which explains why you need a short sale
  • Financial worksheet itemizing your income and expenses
  • Most recent tax returns
  • Most recent pay stubs or quarterly profit and loss if self-employed
  • Most recent bank statements
  •  Provide a Letter of Authorization for Vicki Compton- for permission to speak with your lender on your behalf.  The letter should specify yourEmerald Coast property address and loan number.  I will also need the last four digits of your social security number for verification with your lender. 
  • I will place your property on the marketfor fair market value.  Most lenders will only consider offers that net close to what your real estate appraises for, based on their independent appraisal, and the criteria of the end-investor on your loan.  "Net" means after all costs, including  any payoffs to second mortgage holders, taxes, real estate commission, title insurance, etc.  Thus, I will monitor your list price closely to advise you of probably bank appraisal.
  • When we get an offer, I will ensure that it states it is "contingent on seller's mortgage holders' approval".
  • You may counteroffer the buyerat this step, as we don't want to send an offer to the bank that we think will be rejected.
  • I will package up the contractwith the following documents and fax or express mail them to your lender: 
  • Buyer's pre-approval letter
  • Copy the listing agreement
  • Estimated net sheet or HUD-1 Settlement Statement and other documents
  • Expect to wait 90 to 120 days for a response from the bank.  They will be  ordering an independent appraisal or Broker Price Opinion on your real estate to ensure the offer is for fair market value.  If the appraised value is higher than the offer amount, they may counter-offer at the appraised price. The buyer may choose to comply, to stay firm, or to come up at this point. 
  • If there are two lenders involved, or a Private Mortgage Insurance company (PMI), then I will facilitate the negotiations between them focusing on a fully approved sale on your behalf. 
  • If the lender deems you have sufficient income or savings, they may ask you for a cash contribution or promissory note, usually at favorable terms, to mitigate some of the loss.
  • Further steps and negotiations occur behind the scenes. Rest assured, I will be following up on a successful sale for you every step of the way.