The Short Sale Approval Process
Here is some helpful information to help you understand
Home Owners, You Need a Specialist Who Doesn't Charge Money!
Some common mistakes we see are the number of posts on short sales and it seems that the majority of people that are trying to do short sales, collect all these offers and send them to the bank with missing parts to the short sale package.
Another thing we see are agents that try to get approval for a short sale prior to listing or before accepting offers.
My partners and I like to have our realtor list the property 10% below market value (based on the last sold comp ( comparable market value and based on the subject property specifics).
So, based on the sellers criteria of late payments we determine how aggressive we must be in lowering that price to get a solid offer. We depend on the realtor's market analysis expertise to guide us through the marketing strategies.
The bank will order a BPO and the realtor will be present at the time of this appointment to be in agreement with the condition and fair market value of the property. Once we make a solid offer that the bank will agree on, they will go back and forth before they accept the offer.
We submit a hardship letter ( you must be able to prove a hardship),
Our realtor will send us a market analysis of our declining market to submit. We'll need 2 pay stubs, 2 bank statements, 2 tax returns and a financial statement for the seller (assets/liabilities/income/expenses). Included will be the Listing Agreement and all Addenda for a Short Sale and the Purchase Agreement.
Once the offer is accepted the lender is notified and then we send them a complete short sale package.
We always overnight the package to make sure it is recieved safely and in the quickest way to ship. Our staff will then follow-up daily to speak with a Loss Mitagator. We then call daily until a BPO is schedule.
Once the offer is accepted, the realtor will be contacted and can meet the BPO provider at the house. Our realtor will try to ascertain if their market knowledge will get the job done. Within one week of the BPO, the home owner should get the short sale approval. Our shortest approval has been 5-7days. We have been successful of 93% our short sales to date.
The bank will typically accept 60-80% of market value for the property.
508-400-1190
The Foreclosure Process
The foreclosure process contains 3 stages:
Pre-foreclosure, Foreclosure Sale, and Bank Owned Properties
There are three stages during which the homeowner has an opportunity to bring the loan current or sell the property by means of a "short pay" to avoid foreclosure.
After about two to four months of missed payments, the lender orders a trustee to record a Notice of Default (NOD) which is a complaint file with the state. This puts the borrower on notice that he or she is facing foreclosure and starts a reinstatement period that typically runs until five days before the home is auctioned off.
If the default isn't corrected (the loan must be brought current) within three months, a foreclosure sale date is established. The homeowner will receive a Notice of Sale, and this notice will also be posted on the property. In addition, the Notice of Sale is recorded at the County Recorder’s Office in the county where the property is located. Finally, this Notice of Sale is also published in newspapers local to the county in question over a three-week period.
The foreclosure Trustee Sale typically occurs on the steps of the county courthouse in which the property is located. The time and location of this sale are designated in the Notice of Sale. At the Trustee Sale, the property is auctioned in public to the highest bidder, who must pay the high bid price in cash, typically with a deposit up front and the balance within 24 hours. They will then receive the trustee’s deed to the property.
If you would like to speak to someone regarding your situation to discuss the short sale process simply fill the form below or call our office at 508-400-1190 .