Process of a Short Sale

We have a short sale procedure that is unmatched by any in our industry. We assist you step by step in the short sale process starting with an initial consultation through and after the closing.

Our process is as follows:

• We consult with you to help you understand your options resulting from your hardship; such as modification, short sale, deed in lieu, foreclosure. We will review the procedures of most of these options and will provide references of other professionals to consult with, such as attorneys or CPA’s.
• When establishing your short sale listing with us, we collect the financial information that your bank will require when considering a short sale.
• When we input your listing into MLS we send the Sellers Authorization Form to the bank. This document allows us to communicate with your bank directly.
• We market your home at, or slightly below, market value until we get an offer.
• As soon as we have a binding Purchase and Sale Contract, we will send a complete short sale package to the bank to begin the approval process. The banks are overwhelmed so we are proactive and will call the banks on average 3 times per week just to ensure they are processing your file.

Occasionally we may require your assistance in communication with the bank, so we ask that you make yourself accessible within 24 hours.

Upon lender approval, we will proceed with closing the transaction. Our standard Short Sale Disclosure that is included with every fully executed contract states that the close of escrow will take place within 45 days from the date of lender(s) approval but could be earlier.

You must be prepared to move out before the closing. If you cannot attend closing and require other arrangements to sign the documents, please let us know. Options may include signing the morning of the closing or assigning a Power of Attorney in advance.

Frequently Asked Questions from Homeowners/Sellers

What is a Short Sale?

A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. (Wikipedia)

Would I qualify for a Short Sale?

There are 2 main qualifications for a good Short Sale candidate:

• A homeowner who needs to sell their home and cannot sell the home at a price to cover all liabilities on the property due to a declining market.
• A homeowner who has come across a hardship and can no longer afford to keep the property.

Note: You do not have to be behind on your mortgage payments to qualify for a short sale.

How long does it take?

The process to list the home can be done in as little as a few days. The short sale time frame depends on the bank. It can take as little as 4 weeks or as long as 4 months once an offer has been made on the house.

What if I don’t have money to pay the Realtor commissions?

You as the seller do not have pay the Realtor commissions, it comes out of the bank’s proceeds.

Are there any tax implications to a Short Sale?

Tax laws are changing constantly so please consult with your CPA or Tax Preparer for more detailed information.

Are there any credit consequences to a Short Sale?

The general consensus is that a short sale is less harsh on credit scores than a foreclosure. However, you should consult a credit professional for more detailed information on the impact from the short sale.

Why would a bank agree to a Short Sale?

It is more cost effective for a bank to do a Short Sale rather than Foreclose on a home because they limit their loss.

Am I liable for the difference between what I owe and what the home sells for?

Before closing on a short sale, we request the lender releases the Seller from additional liability on the note. The liability issues should be consulted by an Attorney and your bank.

When should we start?

Now! A short sale can go very smooth if the mortgage is still current and it can still allow you to qualify for FHA financing without a waiting period of 3 years. This means that you can get back into home ownership sooner rather than later. If you are no longer current then we will work with the bank to try and avoid the foreclosure process, but we need to start soon.

Start by calling us 770-509-0265 or send email to info@sellectrealty.com

This is a free service and the commission will be paid by your lender.  There is nothing to pay upfront.