Short Sale Process Step by Step

As more Short Sales are submitted to Banks and Lenders the Short Sale Process Steps have been updated. Here are the newest Short Sale Steps by leading lenders. Initial Step, Complete a Short Sale Application and get assigned to a negotiator, Property Evaluation, (appraisal or BPO per investor requirements), Short Sale Negotiator completes initial review of the Short Sale Application, They will review the Purchase Value to Amount Owed and the Local Housing Values, they will also review the Hardship and the Debt to Income ratio, they will then review the Contribution, this is to see if the homeowner has assets to assist in the difference between the amount owed and the amount the home is sold for. Most importantly the Short Sale MUST be an arm's-length transaction, the home cannot be sold to a family member, friend or close business associate. once initial Short Sale steps are complete the Negotiator will complete an introduction call to both the Realtor and the seller this will include negotiations on commissions, fees and costs, pricing of the property, timeline and if the seller will be contributing. Once all the initial and additional steps are completed there will be a Short Sale application decision and once it has been approved the negotiator will contact the Realtor and the seller. A Short Sale approval is valid for up to 45 days. Applying for a Short Sale is a daunting task but with the proper Realtor the process can be streamlined and completed within a reasonable time. Next blog will be Myths about Short Sales, so stay tuned.