Selling Your Home As A Short Sale
Step 1. Complete Packet
The first step to move forward is to review and fill out the short sale packet. Because this packet is constantly changing over time, we ask that you simply fill out this form and we”ll email you the latest version to get started.
Step 2. Meet with Us
Once your packet is all filled out we would like to sit down with you and review it. We can explain the process and make sure you have clear expectations for the process of short selling your home. If you are out of state, we can simply do this over the phone and you can email or fax the packet back to us.
Step 3. List Your Home
In addition to the short sale packet, we will have you sign a Listing Agreement which will allow us to get started on the process of finding a buyer for your home. We essentially are offering two services to you. First, to negotiate on your behalf for the short sale with the bank. Second, find a buyer for your home that will cooperate with the short sale terms.
Step 4: Accept an Offer
Once we find a buyer we will negotiate with the buyer on your behalf to ensure we find have the best terms possible to help the short sale close successfully. The buyer will need to cooperate with the short sale terms and understand that we are going to demand the highest offer possible for the home. We are not like many other sale agents who simply send “low-ball offers” to the bank. Our goal is to procure the highest offer possible to minimize the deficiency.
Step 5: Approval of Offer
This is the long part. Waiting for the bank to approve the offer for the short sale can take months. However, once we receive the letter that the offer is approved, we can begin removing contingencies in the offer such as the inspection, appraisal and financing conditions for the buyer. This approval will usually contain the language that the bank will NOT pursue you for the deficiency of the loan.
Step 7: Satisfy Conditions
After we have the approval letter we will need to make sure the banks needs are met as well as our buyers. These include:
- Matching Approved Closing Costs
- Inspection of the Home
- Home Appraisal
- Buyers financing
- Bank to Approval final Settlement Statement
Step 8: Close on Home
Congratulations! The home has been sold in a way that has satisfied the bank’s mortgage to you. The lender is not pursuing you for any loss on the home and you can start fresh. Your credit score will immediately start improving by not having a deficient mortgage report. The short sale really is a tool to avoid foreclosure and bankruptcy.